The Department of Justice (DOJ) and the Federal Trade Commission (FTC) are poised to embark on investigations into prominent AI companies to address concerns regarding anticompetitive practices, as reported by Politico on June 6.

In a coordinated effort, the DOJ will focus its scrutiny on Nvidia, particularly examining the tech giant's dominance in supplying high-end semiconductors to the AI industry. Estimates suggest that Nvidia commands up to 90% of the high-end AI chip market, prompting concerns about potential monopolistic behavior.

Simultaneously, the FTC will turn its attention to evaluating whether Microsoft and OpenAI possess an unfair advantage in the realm of AI and large language models (LLM) technology. This inquiry aims to assess whether these companies have engaged in practices that stifle competition and hinder the growth of innovative players in the AI space.

While the FTC and DOJ have delineated their responsibilities regarding Nvidia, Microsoft, and OpenAI, they will retain their respective authorities over Amazon and Google. Both Amazon and Google reportedly face separate AI-related investigations, distinct from ongoing antitrust inquiries.

Furthermore, the FTC is reportedly examining a deal between Microsoft and Inflection AI to ascertain if it was structured in a manner to circumvent government antitrust scrutiny. This investigation underscores the agency's commitment to upholding fair competition practices within the AI sector.

Despite reports of impending investigations, neither the DOJ nor the FTC has officially confirmed or denied the existence of such inquiries. Politico notes that the absence of a formal agreement has constrained the agencies' ability to proceed with comprehensive investigations into AI companies.

The FTC's interest in scrutinizing AI companies dates back to July 2023 when it initiated a case examining potential violations of consumer protection laws by OpenAI. Subsequent actions by the FTC, including demands for information from key industry players, underscore the agency's commitment to fostering a competitive landscape within the AI industry.

Moreover, the UK's Competition and Markets Authority (CMA) announced its own investigation into several AI companies, including Microsoft, Amazon, and Inflection, signaling a global effort to address concerns surrounding competition and fairness in the AI sector.