Skip to Main Content
Facebook Visit us on LinkedIn Visit us on X Visit us on YouTube Visit us on Instagram

AI Task Force

Jan. 26, 2024

FTC Launches Investigation Over Concern for Competition in the AI Space

This is part of a series from Nelson Mullins' AI Task Force. We will continue to provide additional insight on both domestic and international matters across various industries spanning both the public and private sectors.

The Federal Trade Commission (FTC) issued orders to five companies on Jan. 25 requiring them to provide information regarding three separate multibillion-dollar investments — Microsoft and OpenAI, Amazon and Anthropic, and Google and Anthropic — and the potential impact on competition.

The orders were sent as an investigation based on 6(b) of the FTC Act, which authorizes the commission to conduct studies that allows it to better understand the investments and partnerships formed between generative AI developers and cloud service providers. 

The FTC is seeking information specifically related to:

  • Information regarding a specific investment or partnership, including agreements and the strategic rationale of an investment/partnership.
  • The practical implications of a specific partnership or investment, including decisions around new product releases, governance or oversight rights, and the topic of regular meetings.
  • Analysis of the transactions’ competitive impact, including information related to market share, competition, competitors, markets, potential for sales growth, or expansion into product or geographic markets.
  • Competition for AI inputs and resources, including the competitive dynamics regarding key products and services needed for generative AI.  
  • Information provided to any other government entity, including foreign government entities, in connection with any investigation, request for information, or other inquiry related to these topics.

A copy of the orders can be found here.

Follow Nelson Mullins' Idea Exchange for more thought leadership from our AI Task Force, or click here to subscribe to emails from the Nelson Mullins AI Task Force blog. 

Established in 1897, Nelson Mullins is a full-service Am Law 100 firm of more than 1,000 attorneys, policy advisors, and professionals with offices across the United States. For more information, go to www.nelsonmullins.com.