Microsoft's interactions with OpenAI have previously attracted regulatory attention. Earlier this year, the company encountered antitrust issues concerning its partnership with OpenAI, prompting it to forfeit an observer position on OpenAI's board to mitigate concerns regarding anti-competitive behaviour. This action was perceived as a strategy to avert potential regulatory repercussions, yet it has not resolved all apprehensions.

In a recent development, Google has officially urged the US Federal Trade Commission (FTC) to dismantle Microsoft's exclusive cloud hosting arrangement with OpenAI, as reported by The Information. This request arises amid a wider investigation by the FTC into Microsoft's business practices, particularly examining how such exclusivity could hinder competition within the cloud computing industry.

Why does Google want Microsoft and OpenAI deal to be KILLED?

The fundamental issue revolves around Microsoft's exclusive position as the sole cloud provider for OpenAI's groundbreaking AI models. Google contends that this exclusivity creates substantial barriers to market entry and may result in increased costs for cloud customers seeking to utilize advanced AI technologies. Competitors such as Google and Amazon are advocating for the opportunity to host OpenAI's AI models on their respective platforms, claiming that the existing arrangement stifles market competition and restricts consumer options.

Reports indicate that businesses obtaining OpenAI's technology through Microsoft may face additional charges if they are not already utilizing Microsoft's cloud services. This pricing structure has been criticized by Google and other competitors as potentially harmful to customer interests, as it may hinder wider access to technology and impede innovation in AI development.

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