Google has officially asked the US Federal Trade Commission (FTC) to break Microsoft’s exclusive cloud storage agreement with OpenAI, according to a report by The Information. The call comes as the FTC is conducting a broader investigation into Microsoft’s business practices, focusing on how such a monopoly could stifle competition in the cloud computing sector. What are the clouds like?
Why does Google want the Microsoft and OpenAI deal KILLED?
The crux of the matter lies in Microsoft’s position as the sole cloud provider for OpenAI’s pioneering AI models. This monopoly Google argues, erects significant market barriers and could lead to rising costs for cloud customers who want to take advantage of advanced AI technologies. Competitors, including Google and Amazon, are pushing for the right to host OpenAI’s AI models on their own platforms, asserting that the current deal would limit market competition and limit innovation. customer’s choice.
Sources suggest that businesses acquire OpenAI’s technology through Microsoft Additional fees may apply if they are not already using Microsoft’s cloud infrastructure. This pricing model has been highlighted by Google and other competitors as potentially detrimental to customer interests, potentially limiting broader technological access and innovation in AI development.
This isn’t the first time Microsoft’s deals with OpenAI have come under regulatory scrutiny. Earlier this year, Microsoft faced antitrust concerns related to its relationship with OpenAI, causing it to abandon its observer status on the platform. OpenAI board to alleviate concerns about anti-competitive practices. The move was seen as an attempt to stave off a regulatory backlash but was clearly not enough to quell all concerns.
