Google has called on the U.S. Federal Trade Commission (FTC) to intervene in Microsoft’s exclusive cloud hosting arrangement with OpenAI, citing concerns that the deal stifles market competition and harms consumers. This request was made during a broader FTC investigation into Microsoft’s business practices, according to reports.
At the heart of the dispute is Microsoft’s exclusive agreement to be the sole cloud provider for OpenAI’s advanced artificial intelligence models. Google argues that this exclusive deal limits options for other cloud providers, such as itself and Amazon, and restricts access to OpenAI’s cutting-edge technologies. The tech giant further contends that this arrangement could lead to higher costs for customers who wish to leverage OpenAI’s AI capabilities but do not want to rely on Microsoft’s cloud infrastructure.
Competing companies, including Google, claim that the exclusive deal creates unfair market barriers. They argue that allowing Microsoft to be the only provider hosting OpenAI’s models limits customer choice and hinders fair competition in the cloud services market. According to reports quoting sources, businesses that want to integrate OpenAI’s technology through Microsoft may face additional fees if they are not already using Microsoft’s cloud services.
Earlier this year, Microsoft faced antitrust scrutiny over its relationship with OpenAI, with some regulatory concerns raised about the depth of their partnership. In an attempt to address these concerns, Microsoft relinquished its observer seat on OpenAI’s board.
As cloud providers vie for access to OpenAI’s groundbreaking AI models, Google and its competitors are calling for changes to the deal, urging regulators to dismantle the exclusive agreement and promote a more competitive environment in the cloud computing and AI technology markets.
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