Google asks FTC to terminate Microsoft’s exclusive OpenAI partnership: report

According to a report from Microsoft, Google has asked US regulators to revoke Microsoft’s exclusive agreement to host OpenAI technology on its cloud infrastructure The information. The appeal was reportedly part of a larger investigation into Microsoft’s business practices by the Federal Trade Commission (FTC).

The FTC reached out to Google to discuss concerns related to Microsoft’s business activities, the report said, citing a person 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 agreement allows the company to deliver OpenAI’s advanced technologies, including those behind ChatGPT, through its cloud servers. Rivals in the cloud hosting market such as Google and Amazon have expressed concerns that this setup prevents them from offering OpenAI’s tools to their own customers without relying on Microsoft’s infrastructure.

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Per The informationCompanies that want to use OpenAI’s products through Microsoft may face higher fees if they choose not to work on Microsoft’s servers. Google and other companies have indicated that these additional costs could negatively impact customers by limiting their flexibility and increasing costs.

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

The FTC’s review of these claims comes amid heightened scrutiny of large technology companies and their competitive practices, as regulators seek to ensure fair play in an evolving digital landscape.

Source: The Information