For those unaware, Microsoft and OpenAI have a strategic partnership.
FTC has already been investigating Microsoft's business model and practices.
This will allow competitor companies such as Google and Amazon to host OpenAI’s AI models.
If reports are to be believed, Google has asked the US Federal Trade Commission (FTC) to step up and check Microsoft’s exclusive agreement that will allow it to host OpenAI’s technology on its cloud servers. For those unaware, Microsoft and OpenAI have a strategic partnership. Within the partnership, Microsoft provides cloud computing resources and funding, while OpenAI offers advanced AI models and intellectual property. Further, OpenAI is the leading AI company of the time hence the concerns.
FTC has already been investigating Microsoft’s business model and practices. Google’s request has come after concerns were raised during the ongoing investigation. If the commission agrees to act on Google’s appeal, Microsoft and OpenAI will have to alter their agreement. This will allow competitor companies such as Google and Amazon to host OpenAI’s AI models.
Right now when users buy OpenAI’s tech through Microsoft, they may have to incur additional charges. This particularly happens when they are not using Microsoft’s cloud services already. Further, even OpenAI has previously expressed frustrations with Microsoft’s pace in meeting its growing demands for cloud infrastructure. This also includes faster server supplies to support its evolving AI projects.
OpenAI in itself hasn’t been in the best space and is facing financial issues. If reports are to be believed, the company is potentially facing bankruptcy with projected losses of $5 billion in the next year.
The company recently secured $6.6 billion in funding from investors, including Microsoft and NVIDIA, boosting its market cap to over $157 billion. OpenAI plans to use these funds to acquire more data centers and AI chips, potentially reducing its reliance on Microsoft.
Let’s see how the commission acts on Google’s concerns and if it asks to amend the partnership, how will Microsoft react to this. But what this clearly indicates is that the AI race is getting more and more fierce.
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Mustafa Khan
Mustafa is a young tech journalist who tells it like it is, cutting through buzzwords to deliver straightforward smartphone reviews. He’s the office go-to for insider tips and quick demos, and his video content doesn’t waste anyone’s time. When he’s off the clock, he geeks out over cars, photography, and hunting down the best spot for Indian food. View Full Profile
