Microsoft is once again under FTC fire, but this time, it has to do with AI

FTC and Microsoft have a long history.

2 min. read

Published onJune 6, 2024

published onJune 6, 2024

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Microsoft is once again in the spotlight, but this instance does not involve software or operating systems. The tech giant is now encountering a different type of examination from the Federal Trade Commission (FTC) and the Justice Department. It’s about artificial intelligence (AI) and a deal that the regulatory authorities could have missed.

The FTC is looking deeper into Microsoft’s actions, particularly its purchase of AI skills from Inflection AI. The transaction, which Microsoft valued at a handsome $650 million, was said to have united Mustafa Suleyman—an AI expert—and his group with Microsoft.

According tothe latest reports, the FTC worries that Microsoft could have planned this deal in a way to avoid an official review. If the FTC believes so, it may delay Microsoft’s significant AI action.

But there are more irons in the AI fire for Microsoft. The company is being examined along with OpenAI and NVIDIA because of their “dominant roles” in this industry. This is important as these companies are leading the way with AI technology that changes how we interact with the digital world.

The connection between Microsoft and OpenAI is particularly significant due to a $13 billion investment and technological alignment.

What is behind the FTC and Justice Department’s sudden interest? It appears that the quick progress and probable effects of AI technology have attracted government focus. They are seeking to confirm that too much power in AI does not gather among a few players, which might hinder competition and creativity.

The way these investigations are going could establish future methods for AI companies to function and cooperate. Microsoft, in particular, will need to carefully handle these legal matters as it tries to grow its AI skills while avoiding any disagreement with regulators.

The Redmond-based tech giant has recently come under scrutiny after it announced Windows Recall, an AI-powered tool capable ofrecording and keeping track of everything Windows users do. Many see it as official ‘spyware,’ and the tool itself canbe easily hacked.

In a world that’s increasingly centered around AI, it is very important to monitor these investigations. The way these investigations go could shape the future of AI, affecting not only how companies make and use these technologies but also our interactions with them as users.

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Microsoft is once again under FTC fire, but this time, it has to do with AI