Reports online suggested that the U.S. Justice Department and the Federal Trade Commission (FTC) have teamed up for antitrust investigations into the big three – Nvidia, OpenAI and the Microsoft.

What are these antitrust investigations? They are regulations to ensure that there’s healthy competition in the market. Suppose if there are any monopolies, unjustified mergers or abuses of dominance, these laws step in and stop that from happening.

Everyone is aware of the AI advancements, who isn’t duh! But concerns are rising about domination within the AI realm. Nvidia recently hit the $3T mark, and Microsoft is the currently the market leader in capitalization. Microsoft holds 49% stake in OpenAI. This is not the first time: Meta, Apple, Amazon and Google (MAANG as they are collectively known among the IT crowd – N stands for Netflix) were sued in 2019 after they were found breaking antimonopoly laws. Other investigations are ongoing, such as Microsoft’s investment into OpenAI.

So, who is investigating who? FTC is investigating into the Microsoft and OpenAI deals, plus other deals of Microsoft. The Justice Department is handling Nvidia. If there are any violations, they should be charged and brought under law. Also, a fair competition would mean better products and reasonable cost. It is encouraging to see agencies continuing to monitor and trying to bring the AI companies under regulations. I agree to what Lina Khan, the chair of F.T.C had said something of similar lines that it is better to spot the problems in the beginning rather than years later.

We will cover more on this as we come across any news on these investigations. As of now, there are no official comments available from any of the organizations or agencies. Would these investigations have any effects on the stock prices? What is your take on this?