Google wants the biggest AI deal between Microsoft and OpenAI to be KILLED- Why?

Google has formally requested that the US Federal Trade Commission (FTC) break up Microsoft's exclusive cloud hosting agreement with OpenAI, according to a report by The Information. This appeal emerges amidst a broader investigation by the FTC into Microsoft's business practices, focusing on how such exclusivity might stifle competition in the cloud computing sector.

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

The crux of the issue lies in Microsoft's status as the sole cloud provider for OpenAI's pioneering AI models. This exclusivity, Google argues, erects significant market barriers and could lead to inflated costs for cloud customers wishing to leverage advanced AI technologies. Competitors, including Google and Amazon, are pushing for the right to host OpenAI's AI models on their own platforms, asserting that the current arrangement curtails market competition and limits customer choice.

Sources suggest that businesses acquiring OpenAI's technology via Microsoft may encounter additional fees if they are not already using Microsoft's cloud infrastructure. This pricing model has been highlighted by Google and other rivals as potentially detrimental to customers' interests, possibly restricting broader technological access and innovation in AI development.

This isn't the first time Microsoft's dealings with OpenAI have come under regulatory scrutiny. Earlier in the year, Microsoft faced antitrust concerns related to its relationship with OpenAI, leading it to relinquish an observer seat on OpenAI's board to alleviate fears of anti-competitive practices. This move was seen as an attempt to pre-empt regulatory backlash but has evidently not been enough to quell all concerns.