Google Challenges Microsoft's Exclusive OpenAI Hosting Deal

Google has asked the FTC to investigate and potentially end Microsoft's exclusive cloud hosting agreement with OpenAI, citing anti-competitive concerns.

Google has formally requested the U.S. Federal Trade Commission (FTC) to terminate Microsoft's exclusive agreement to host OpenAI's models on its Azure cloud servers.
The request follows an ongoing FTC investigation into Microsoft's cloud computing practices, which are alleged to harm competition in the AI market.
Microsoft's deal with OpenAI allows it to exclusively host popular AI models like ChatGPT, generating $1 billion in revenue in 2024 from reselling these technologies.
Google and other competitors argue the arrangement imposes additional costs on rivals and blocks them from hosting OpenAI’s models, limiting market competition.
The FTC's decision could significantly impact Microsoft’s position in the AI market and broader industry dynamics, though no ruling has been made yet.