Joe Biden's 11th-hour parting gift to Elon Musk, which he is now using to break up OpenAI and Microsoft; here's all about it
Tesla CEO Elon Musk has found an unexpected ally in the former US President Joe Biden administration's final days which is a pair of scholarly papers from the Department of Justice and Federal Trade Commission that support his antitrust lawsuit against OpenAI and OpenAI CEO Sam Altman, reported Business Insider. These documents actually scrutinize the potential illegality of partnerships between cloud service providers and AI developers specifically targeting the Microsoft and OpenAI relationship.
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According to Business Insider, the lawsuit of Tesla CEO Elon Musk alleges that OpenAI has transformed from a non-profit research lab to a ‘$157 billion for-profit, market-paralyzing’ entity. Thus, he now eventually seeks to break up the Microsoft and OpenAI partnership which he claims is an unregulated ‘de facto merger’ that threatens fair competition in AI development.
The DOJ and FTC reports highlight severe concerns about board interlocks and potential information sharing between companies. They specifically examined three major AI partnerships which are the Microsoft-OpenAI, Amazon-Anthropic and Google-Anthropic, asserted Business Insider.
The $13.75 billion investment of Microsoft in OpenAI was specifically scrutinized as potentially undermining competitive practices.
