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Google pushes to break Microsoft’s exclusive hold on OpenAI

In this post:

  • Google asked the FTC to end Microsoft’s sole right to host OpenAI’s technology only on Microsoft’s servers.
  • Other cloud providers, such as Google and Amazon, also want to host OpenAI’s models in a bid to expand the accessibility of advanced AI technologies.
  • Companies of OpenAI’s ChatGPT through Microsoft could face additional fees.

Google has asked the U.S. Federal Trade Commission (FTC) to end Microsoft’s sole right to host OpenAI’s technology only on Microsoft’s own servers. The request comes amid the growing demand for AI technologies in various industries worldwide.

Reuters reported the information on December 11th. According to the news outlet, someone involved in the matter said the search engine giant’s request followed the U.S. Federal Trade Commission’s outreach to Google regarding Microsoft’s business methods as part of a broader investigation.

The story explained that other big cloud providers, such as Google and Amazon, also want to tap into the market and host OpenAI’s models. If the FTC approves Google’s requests, customers of those companies can use OpenAI’s tools without having to go through Microsoft’s servers.

Google highlights that added costs can burden OpenAI customers

The tech giant added that companies using OpenAI’s ChatGPT through Microsoft could face additional fees if they don’t already run on Microsoft’s servers. Other rivals of Microsoft say that these added costs will ultimately hurt the customers and therefore restrict technological access.

Reuters asked Microsoft, OpenAI, the U.S. Federal Trade Commission, and the search engine giant for comment but did not get an immediate reply.

In June of this year, U.S. regulators, including the Federal Trade Commission and the Justice Department, launched antitrust investigations on Microsoft, OpenAI, and Nvidia over their influence in using artificial intelligence. 

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In January, FTC Chair Lina Khan announced the investigations on the investments and partnerships being formed between AI developers and major cloud service providers while speaking at the agency’s tech summit on AI.

Elon Musk expands his lawsuit against OpenAI to include antitrust claims

In mid-November, billionaire tech entrepreneur Elon Musk expanded his existing lawsuit against the ChatGPT developer, reinforcing the case with fresh claims, including antitrust allegations. According to the lawsuit filed in the federal court in Oakland, California, Musk explained that OpenAI and Microsoft illegally colluded to monopolize the market for generative artificial intelligence and sideline competitors. OpenAI said in a statement that the updated lawsuit is even more baseless and overreaching than the initial filing.

Musk first filed the lawsuit against OpenAI and its co-founders, Sam Altman and Greg Brockman, on August 5th. In the lawsuit, he alleged that the accused manipulated him to help develop the AI company and that OpenAI violated the founding consensus to develop AI for the well-being of humanity. The complaint also highlighted that OpenAI went from a tax-exempt non-profit to a $157 billion “market-paralyzing gorgon” in eight years. Musk wants the U.S. regulators to revoke OpenAI’s license as a for-profit company with Microsoft and mandate the two entities to divest the illicit gains achieved after the transition. 

See also  Microsoft sets eyes on India with $3 billion investment in cloud and AI

As the legal disputes ensue, sources also recently revealed that OpenAI seeks to ditch Microsoft after achieving artificial general intelligence (AGI). AGI is a highly autonomous system that outperforms humans at most economically valuable work. According to the sources, the provision will exclude Microsoft from the startup’s most advanced AI models once AGI is achieved. 

The sources also revealed that OpenAI’s board of directors will determine when AGI is achieved. The matter is still under discussion, and the board has not yet finalized the way forward.

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