Google wants the FTC to stop exclusive Microsoft cloud deal with OpenAI

Date:
Wed, 11 Dec 2024 16:00:00 +0000

Description:
Microsoft is OpenAIs exclusive cloud provider, but Google says this could be
costly and damaging to customers.

FULL STORY

Google has reportedly asked the Federal Trade Commission (FTC) to investigate
Microsoft's current partnership with OpenAI, which allows it to be the AI
giant's exclusive cloud provider. 

The accusation (via The Information ), comes after months of deals between 
the two companies, starting with Microsoft's multi-billion dollar investment
into OpenAI, and the subsequent rollout of GPT-powered AI tools across its
office software. 

The problem, says Google, is that Microsofts position as the sole cloud
provider for OpenAIs models, including the widely used ChatGPT chatbot, would
limit market competition and impose higher costs on certain customers seeking
to access OpenAIs technology.

Google tackles Microsofts partnership with OpenAI

Under Microsofts current agreement, companies using OpenAIs services may 
incur additional charges if they do not use Microsofts Azure cloud servers
themselves, which has been branded as an anticompetitive practice. And
Microsofts oh-so familiar with allegations of anticompetitive business
practices  this year alone it has faced numerous threats to investigate its
cloud business, but this AI-related concern marks a slightly different angle
of attack. 

Microsoft has been accused of creating itself an unfair advantage by
discouraging businesses from using alternative cloud providers. Furthermore,
increased costs could harm customers and reduce their access to AI tools. 

Microsoft isnt oblivious to these types of accusations, though. Earlier in
2024, it gave up an observer seat on OpenAIs board in order to address
regulatory scrutiny. 

Although Google is pointing the finger at Microsoft, it, too, has faced
antitrust investigations recently. In early 2024, a US judge stated Google 
has an illegal monopoly over the internet search market, and would be facing 
a probe.

Cloudflares recent 2024 Year in Review figures confirmed that Google holds
88.5% of the search market, far ahead of Yandex (3.1%), Baidu (2.7%), Bing
(2.6%) and DuckDuckGo (0.9%) in second to fifth places. 

OpenAI and the FTC have already declined to respond to media enquiries. 
Google and Microsoft have not yet responded.

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Link to news story:
https://www.techradar.com/pro/google-wants-the-ftc-to-stop-exclusive-microsoft
-cloud-deal-with-openai

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