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Google Urges FTC to Breakup of Microsoft’s Exclusive OpenAI Partnership: Report

By  |  December 10, 2024

Google has urged U.S. regulators to dismantle Microsoft’s exclusive arrangement to host OpenAI’s technology on its cloud infrastructure, according to a report by The Information. The appeal reportedly emerged as part of a larger investigation by the Federal Trade Commission (FTC) into Microsoft’s business practices.

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    The FTC had approached Google to discuss concerns related to Microsoft’s operations, the report said, citing an individual with direct knowledge of the exchange. The tech giant expressed its view that the exclusivity of Microsoft’s partnership with OpenAI could stifle competition in the cloud computing market.

    Microsoft’s arrangement allows it to provide OpenAI’s advanced technologies, including those behind ChatGPT, through its cloud servers. Competitors in the cloud hosting market, such as Google and Amazon, have voiced concerns that this setup prevents them from offering OpenAI’s tools to their own customers without depending on Microsoft’s infrastructure.

    Read more: Microsoft Demands FTC Investigation into Alleged Antitrust Probe Leak

    Per The Information, businesses seeking to utilize OpenAI’s products through Microsoft may face higher fees if they choose not to operate on Microsoft’s servers. Google and other companies have pointed out that these extra costs could negatively impact customers, limiting their flexibility and increasing expenses.

    The investigation highlights the growing tensions between leading cloud providers as they vie for dominance in a sector increasingly driven by artificial intelligence technologies. While Microsoft’s partnership with OpenAI has bolstered its position in the cloud market, competitors argue that exclusive agreements risk hindering innovation and customer choice.

    The FTC’s examination of these claims comes amid heightened scrutiny of major technology companies and their competitive practices, with regulators seeking to ensure fair play in an evolving digital landscape.

    Source: The Information