Nvidia, Microsoft, OpenAI may face antitrust probe

STORY: U.S. watchdogs have set the stage for an antitrust probe into how America’s top tech names dominate the AI boom.

Companies in the firing line include Microsoft…

ChatGPT maker and tech pioneer OpenAI…

And artificial intelligence chip champion Nvidia.

A Reuters source says the U.S. Justice Department and Federal Trade Commission have agreed on how to divvy up investigations.

The DoJ will reportedly lead a probe into whether Nvidia has abused antitrust laws.

The chipmaker controls around four-fifths of the market for AI semiconductors.

That has helped it report profit margins of up to 80%.

Wedbush Securities MD Dan Ives says the firm's dominance puts it in the spotlight:

"They are at the top of the mountain and they are single-handedly really providing the picks and shovels for this gold rush. And that's why you see them surpassing 3 trillion, surpassing Apple for market cap. But I believe Nvidia could be the most valuable company in the world, when we look out over the coming years.”

Meanwhile, the FTC will look into OpenAI and Microsoft.

Although the chatbot firm is officially a non-profit, it has a for-profit subsidiary that is heavily backed by the Windows maker.

Regulators have previously expressed a range of concerns around AI, including the advantage that Big Tech has in its access to data used to train software models.

Watchdogs are also worried about what the technology could do to the market for creative work.

The FTC is already looking into claims OpenAI flouted consumer protection laws, and has ordered several Big Tech players to reveal details on their partnerships.

It shares responsibility for enforcing competition laws with the DoJ, but the two try to avoid duplicating investigative efforts.