Competitions risks between OpenAI and Microsoft

24 January, 2025
competition risks between openai and microsoft

In a Statement of Interest filed in Elon Musk et al. v. Samuel Altman et al., the U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) emphasized the competitive risks associated with interlocking directorates between OpenAI and Microsoft. The DOJ argued that such arrangements inherently threaten fair competition by enabling the coordination of business strategies and the exchange of sensitive market information.

The FTC highlighted that interlocking directorates could distort market dynamics by creating unfair advantages, even if dismantled, as retained information can still impact competitors negatively. Both agencies stressed that these practices reduce transparency, discourage innovation, and create barriers for other firms to compete fairly, particularly in the rapidly evolving field of generative artificial intelligence.

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