Google has requested the US Federal Trade Commission (FTC) to look into Microsoft's exclusive cloud service deal with OpenAI. The Information, as reported by Reuters, indicates that this discussion took place while the FTC was probing Google about Microsoft's business practices as part of a wider investigation.
Microsoft and OpenAI's Growing Partnership
The alliance between Microsoft and OpenAI started back in 2019 when Microsoft made an initial investment of one billion dollars, which has now surged to $13 billion. In return for this investment, Microsoft gained exclusive rights to provide hosting for OpenAI's services on its cloud platform. Notably, Microsoft intervened to prevent the ousting of Sam Altman last year.
Shift from Non-Profit to For-Profit
OpenAI was founded in 2015 as a non-profit research organization, but things took a turn with the establishment of OpenAI Global in 2019, which operates as a for-profit branch.
According to a report from The Financial Times, OpenAI may be thinking about dropping a clause related to Artificial General Intelligence (AGI) in their agreement, which would have limited Microsoft's access to more advanced models in exchange for additional investments. Recently, OpenAI rolled out a subscription plan priced at $200, named ChatGPT Pro, aimed at researchers and engineers.
Impact on Competitors
Competing companies in the cloud market, such as Google and Amazon, find themselves having to rent Microsoft's servers, even if they are mainly focused on utilizing OpenAI's technology. Microsoft’s rivals argue that this could lead to higher costs for consumers.
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