US Senators Probe Google and Microsoft's AI Partnerships, Citing Competition Concerns

Democratic US senators question Google and Microsoft's AI deals

April 8 (Reuters) - Two Democratic U.S. senators demanded information from Microsoft (MSFT.O), opens new tab and Google (GOOGL.O), opens new tab about their cloud computing partnerships with artificial intelligence companies, expressing concern the arrangements could stifle competition in the cutting-edge industry. U.S. Senators Elizabeth Warren of Massachusetts and Ron Wyden of Oregon, the ranking Democrats on the Senate banking and finance committees, respectively, asked Google for details, opens new tab about its partnership with AI startup Anthropic and Microsoft about its tie-up, opens new tab with ChatGPT creator OpenAI, according to the letters. "We are concerned that corporate partnerships within the AI sector discourage competition, circumvent our antitrust laws, and result in fewer choices and higher prices for businesses and consumers using AI tools," the senators wrote. Spokespeople for the companies did not immediately respond to requests for comment. The letters seek to establish how much the AI companies have paid the cloud providers, whether the deals give Microsoft and Google exclusive rights to license AI models, and whether the Big Tech companies have any plans to acquire their AI partners. The U.S. Federal Trade Commission issued a staff report in January, before U.S. President Donald Trump took office, on a study into partnerships between Microsoft and OpenAI, Amazon (AMZN.O), opens new tab and Anthropic, and Google and Anthropic but withheld information specific to the companies. The report raised the possibility that one cloud service provider could acquire its AI partner, and said that at least one of the AI providers gave its cloud service provider advance notice of important decisions. At least one of the agreements would prevent the AI company from launching new models on its own without releasing it via the cloud provider, the FTC said. Reporting by Jody Godoy in New York; Editing by David Gregorio and Alex Richardson Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Boards, Policy & RegulationRegulatory Oversight Jody Godoy Thomson Reuters Jody Godoy reports on tech policy and antitrust enforcement, including how regulators are responding to the rise of AI. Reach her at jody.godoy@thomsonreuters.com

US senators seek answers on Google and Microsoft AI deals which may 'discourage competition'

Two tech industry titans that have been the subjects of many an anticompetitive investigation are now being questioned over their partnerships with AI companies. Democratic US Senators Elizabeth Warren and Ron Wyden are reportedly demanding information about the deals Google and Microsoft have with companies at the forefront of artificial intelligence. The concern is that these strong partnerships could impact competition within the industry, violate antitrust laws, and ultimately lead to both fewer choices and higher prices for customers. In question are Microsoft's deal with OpenAI and Google's deal with Anthropic, with the Senators seeking financial details of payments made by AI firms to their cloud providers and information on whether the companies have exclusive rights to certain AI models. Warren and Wyden also want to know whether Google or Microsoft have any intentions to acquire their respective AI partners. "Partnerships between CSPs and AI developers, if left unchecked, may accelerate consolidation of the AI sector, ultimately driving up prices and choking off innovation," the two said in their letter to Google CEO Sundar Pichai and Anthropic CEO Dario Amodei (via Reuters), and in their second letter to Microsoft and OpenAI's CEOs, Satya Nadella and Sam Altman. This isn't the first time these specific companies have come under fire for their involvement with leading AI firms. A separate January 2025 report by the Federal Trade Commission had already studied such partnerships, raising concerns about potential acquisitions which could spell out disaster for competition. "As noted in the FTC and Department of Justice (DOJ)'s merger guidelines, even partial acquisitions may present 'significant competitive concerns' because of the effects on firms' incentives and strategy," the Senators continue. TechRadar Pro has contacted all four companies for comments and context, but we have not received any responses as yet.

Democratic US Senators Question Google and Microsoft's AI Deals

(Reuters) - Two Democratic U.S. senators demanded information from Microsoft and Google about their cloud computing partnerships with artificial intelligence companies, expressing concern the arrangements could stifle competition in the cutting-edge industry. U.S. Senators Elizabeth Warren of Massachusetts and Ron Wyden of Oregon, the ranking Democrats on the Senate banking and finance committees, respectively, asked Google for details about its partnership with AI startup Anthropic and Microsoft about its tie-up with ChatGPT creator OpenAI, according to the letters. "We are concerned that corporate partnerships within the AI sector discourage competition, circumvent our antitrust laws, and result in fewer choices and higher prices for businesses and consumers using AI tools," the senators wrote. Spokespeople for the companies did not immediately respond to requests for comment. The letters seek to establish how much the AI companies have paid the cloud providers, whether the deals give Microsoft and Google exclusive rights to license AI models, and whether the Big Tech companies have any plans to acquire their AI partners. The U.S. Federal Trade Commission issued a staff report in January, before U.S. President Donald Trump took office, on a study into partnerships between Microsoft and OpenAI, Amazon and Anthropic, and Google and Anthropic but withheld information specific to the companies. The report raised the possibility that one cloud service provider could acquire its AI partner, and said that at least one of the AI providers gave its cloud service provider advance notice of important decisions. At least one of the agreements would prevent the AI company from launching new models on its own without releasing it via the cloud provider, the FTC said. (Reporting by Jody Godoy in New York; Editing by David Gregorio and Alex Richardson)

Democrats demand information from Microsoft, Google on AI deals

A pair of Senate Democrats are calling on Microsoft and Google to share more information on their separate partnerships with artificial intelligence (AI) companies, expressing concerns the collaborations could violate antitrust laws. In letters sent Monday, Sens. Elizabeth Warren (D-Mass.) and Ron Wyden (D-Ore.), wrote to the leaders of Google and Microsoft -- two cloud service providers -- requesting additional information on their respective partnerships with Anthropic and OpenAI. "We are concerned that corporate partnerships within the AI sector discourage competition, circumvent our antitrust laws, and result in fewer choices and higher prices for businesses and consumers using AI tools," the Democratic lawmakers wrote. The lawmakers ask Google and Microsoft to disclose how much the AI companies have paid the companies for their computing resources, if the deals give the companies exclusive rights to license the AI models and whether talent is being shared between the companies. In addition to developing its own AI technologies, Google has invested into other AI startups, including Anthropic, where it owns 14 percent of the company. The New York Times reported last month that Google does not hold any voting rights, board seats or board observers rights at Anthropic, but has invested more than $3 billion into the AI startup. Meanwhile, Microsoft has invested billions into OpenAI, the maker of the popular chatbot ChatGPT. As a result, Microsoft has incorporated OpenAI's models into its products while the AI developer has access to Microsoft's computing resources. The lawmakers cite a report from the Federal Trade Commission (FTC) in January, which warned such partnerships could pose "risks to competition and consumers," including "locking in the market dominance of large incumbent technology firms." The report was issued shortly before President Trump took office in January and looked at partnerships between cloud service providers and AI developers. While it did not go into specifics about either of the partnerships in the letters, the report suggested such deals raise the possibility the providers could eventually fully acquire the AI developers. "Partnerships between CSPs and AI developers, if left unchecked, may accelerate consolidation of the AI sector, ultimately driving up prices and choking off innovation," Warren and Wyden wrote. Microsoft declined to comment. The other companies did not immediately respond to The Hill's inquiries. The Biden administration carried out various antitrust enforcement efforts against several Big Tech companies and the Trump White House appears to be on the same track. The Justice Department indicated last month it is still seeking a breakup of Google, while the FTC said in February it would continue to use the merger guidelines established in 2023 under former President Biden.

Democratic US senators question Google and Microsoft's AI deals

The US Federal Trade Commission issued a staff report in January, before US President Donald Trump took office, on a study into partnerships between Microsoft and OpenAI, Amazon and Anthropic, and Google and Anthropic but withheld information specific to the companies.Two Democratic US senators demanded information from Microsoft and Google about their cloud computing partnerships with artificial intelligence companies, expressing concern the arrangements could stifle competition in the cutting-edge industry. US Senators Elizabeth Warren of Massachusetts and Ron Wyden of Oregon, the ranking Democrats on the Senate banking and finance committees, respectively, asked Google for details about its partnership with AI startup Anthropic and Microsoft about its tie-up with ChatGPT creator OpenAI, according to drafts of the letters seen by Reuters. "We are concerned that corporate partnerships within the AI sector discourage competition, circumvent our antitrust laws, and result in fewer choices and higher prices for businesses and consumers using AI tools," the senators wrote. The letters seek how much the AI companies have paid the cloud providers, whether the deals give Microsoft and Google exclusive rights to license AI models, and whether the Big Tech companies have any plans to acquire their AI partners. The US Federal Trade Commission issued a staff report in January, before US President Donald Trump took office, on a study into partnerships between Microsoft and OpenAI, Amazon and Anthropic, and Google and Anthropic but withheld information specific to the companies. The report raised the possibility that one cloud service provider could acquire its AI partner, and said that at least one of the AI providers gave its cloud service provider advance notice of important decisions. At least one of the agreements would prevent the AI company from launching new models on its own without releasing it via the cloud provider, the FTC said.

Senators Give Google, Microsoft, Anthropic, OpenAI April 21 Deadline To Justify AI Ties

Elizabeth Warren (in image) and Ron Wyden have given leading tech companies less than two weeks to justify their cloud computing partnerships with AI firms. | Credit: Tom Williams / Getty Images. Two Democratic U.S. senators have given leading tech companies less than two weeks to justify their cloud computing partnerships with AI firms. Google and Microsoft have until April 21 to provide detailed information about their alliances with Anthropic and OpenAI, respectively, amid growing concerns about fair competition in the AI industry. Senators Demand AI Transparency U.S. Senators Elizabeth Warren and Ron Wyden have sent formal letters to the companies, requesting greater transparency around the nature of these partnerships. "We are concerned that corporate partnerships within the AI sector discourage competition, circumvent our antitrust laws, and result in fewer choices and higher prices for businesses and consumers using AI tools," the senators wrote. Their request includes specifics on computing resources, talent-sharing, and intellectual property agreements involved in the partnerships. During a keynote address at Y Combinator's RemedyFest in February 2024, Senator Warren accused Big Tech of using sophisticated AI tools to evade regulatory oversight and suppress competition. "Google's former CEO Eric Schmidt asked Congress for billions in taxpayer dollars for AI -- then turned around and said, 'there's no way a non-industry person can understand what is possible.' Translation: it's too complex for you dummies to understand and too complex for government to regulate," she said. Warnings of Stifled Competition In a January report , the Federal Trade Commission (FTC) warned that partnerships between major tech firms and AI startups could pose serious risks to competition and consumer welfare. The report focused on deals like Microsoft's with OpenAI and Google's with Anthropic, highlighting the potential for "market lock-in," where dominant firms secure exclusive access to AI tools and resources, putting smaller competitors at a disadvantage. "The FTC's report sheds light on how partnerships by Big Tech firms can create lock-in, deprive startups of key AI inputs, and reveal sensitive information that can undermine fair competition," said former FTC Chair Lina Khan. Khan was recently succeeded by former FTC Commissioner Andrew Ferguson following Donald Trump's re-election. Ferguson has vowed to continue the agency's mission to curb Big Tech's grip on the market and protect free speech. "We will make sure that America is the world's technological leader and the best place for innovators to bring new ideas to life," Ferguson wrote on X . Rather than building every component internally, companies like Microsoft and Google have invested billions of dollars into startup partnerships. Microsoft's reported $10 billion investment in OpenAI has enabled deep integration of its models into Bing and Azure. Similarly, Google, through substantial investments in Anthropic, has embedded its Claude AI models into Google Cloud offerings. As the AI sector continues its rapid expansion, the structure and regulation of these partnerships will have profound implications for the future of technology, competition, and consumer choice.

Democratic US senators question Google and Microsoft's AI deals

(Reuters) - Two Democratic U.S. senators demanded information from Microsoft and Google about their cloud computing partnerships with artificial intelligence companies, expressing concern the arrangements could stifle competition in the cutting-edge industry. U.S. Senators Elizabeth Warren of Massachusetts and Ron Wyden of Oregon, the ranking Democrats on the Senate banking and finance committees, respectively, asked Google for details about its partnership with AI startup Anthropic and Microsoft about its tie-up with ChatGPT creator OpenAI, according to the letters. "We are concerned that corporate partnerships within the AI sector discourage competition, circumvent our antitrust laws, and result in fewer choices and higher prices for businesses and consumers using AI tools," the senators wrote. Spokespeople for the companies did not immediately respond to requests for comment. The letters seek to establish how much the AI companies have paid the cloud providers, whether the deals give Microsoft and Google exclusive rights to license AI models, and whether the Big Tech companies have any plans to acquire their AI partners. The U.S. Federal Trade Commission issued a staff report in January, before U.S. President Donald Trump took office, on a study into partnerships between Microsoft and OpenAI, Amazon and Anthropic, and Google and Anthropic but withheld information specific to the companies. The report raised the possibility that one cloud service provider could acquire its AI partner, and said that at least one of the AI providers gave its cloud service provider advance notice of important decisions. At least one of the agreements would prevent the AI company from launching new models on its own without releasing it via the cloud provider, the FTC said. (Reporting by Jody Godoy in New York; Editing by David Gregorio and Alex Richardson)