Google Requests FTC to Block Microsoft’s Exclusive Cloud Deal with OpenAI
Google’s Call for Action
Google has formally urged the U.S. government to intervene and break up Microsoft’s exclusive agreement with OpenAI, which grants Microsoft the rights to host OpenAI’s technology on its cloud servers. This request was made following an inquiry by the U.S. Federal Trade Commission (FTC) into Microsoft’s business practices, as reported by The Information on Tuesday.
The Competitive Landscape
Tech giants like Google and Amazon, who are competitors to Microsoft in the cloud services market, are seeking to host OpenAI’s models on their own platforms. The goal is to allow their customers to access OpenAI’s technology without being forced to use Microsoft’s servers. According to the report, businesses that acquire OpenAI’s technology through Microsoft may face additional costs unless they are already using Microsoft’s cloud infrastructure for their operations.
Concerns Over Increased Costs
Google and its competitors argue that these additional charges would negatively impact customers, making it more expensive for them to access OpenAI’s offerings. The new costs are seen as a competitive disadvantage that could harm the cloud services market, as per the concerns raised in the report.
Responses from Involved Parties
Google declined to comment on the report, while Microsoft, OpenAI, and the FTC have not responded to Reuters’ requests for comment.
