Google has urged the US Federal Trade Commission to dismantle Microsoft’s exclusive cloud hosting arrangement with OpenAI.
According to a report by The Information, Google’s request came during a broader FTC investigation into Microsoft’s business practices. The tech giant argues that Microsoft’s exclusive deal with OpenAI creates significant market barriers and potentially increases costs for cloud customers seeking advanced AI technologies.
The core dispute centers on Microsoft’s current arrangement, which allows the company to be the sole cloud provider hosting OpenAI’s cutting-edge AI models. Competing cloud providers like Google and Amazon are seeking the ability to host OpenAI’s technology, contending that the current exclusive agreement limits market competition and customer choice.
Sources suggest that companies purchasing OpenAI‘s technology through Microsoft might face additional charges if they do not already utilize Microsoft’s server infrastructure. Google and other competitors have emphasized that such pricing structures could harm customers and restrict technological access.
Earlier this year, Microsoft faced antitrust scrutiny over its relationship with OpenAI, even relinquishing an observer seat on the startup’s board to mitigate potential regulatory concerns.