The Federal Trade Commission (FTC) raised concerns in a recent staff report regarding potential competition issues arising from partnerships between Big Tech companies and generative AI developers. Specifically, the report pointed out Microsoft’s support for OpenAI and the partnerships between Amazon and Alphabet/Google with Anthropic.

FTC chair Lina Khan highlighted how these partnerships by major tech firms can lead to lock-in situations, limit startups’ access to crucial AI resources, and expose sensitive information that may harm fair competition. The report also delves into the roles of Microsoft, Amazon, and Google as cloud service providers collaborating with OpenAI and Anthropic.

One of the report’s key findings is that these partnerships could impact the availability of computing resources and engineering talent, raise the costs of switching for companies working with AI developers, and potentially grant cloud providers exclusive access to sensitive data. Microsoft’s deputy general counsel, Rima Alaily, defended the company’s partnership with OpenAI, stating that it has fostered significant technological innovation and investment in the AI industry.