The United States Federal Trade Commission (FTC) has expressed concerns about the growing power of major technology companies – including Microsoft, Amazon, and Google – in the AI sector.

A report released on Jan. 16 highlighted risks associated with partnerships between these firms and AI startups, such as potential data advantages and resource consolidation.

Examples include Microsoft’s US$13 billion investment in OpenAI and Amazon and Google’s deals with Anthropic.

The FTC highlighted risks such as “lock-in” effects, where startups are limited to single partnerships, exclusive access to AI talent, and sensitive data sharing.

The report also criticized “circular spending,” where investments, like Microsoft’s Azure credits for OpenAI, benefit the tech companies’ products.

The FTC’s ongoing investigation, initiated in 2023, could inform future antitrust actions, with a focus on ensuring fair competition in the rapidly evolving AI landscape.