US lays groundwork for antitrust investigations into Microsoft, OpenAI, and Nvidia

The U.S. Justice Department and the Federal Trade Commission have struck a deal paving the way for potential antitrust investigations into the dominant positions held by Microsoft, OpenAI, and Nvidia in the artificial intelligence industry, according to a source familiar with the situation.
This agreement underscores the growing regulatory focus on industry consolidation within the AI sector. Microsoft and Nvidia, both market leaders, have seen their market capitalizations soar, with Nvidia recently surpassing the $3 trillion mark.
U.S. antitrust authorities have voiced various concerns regarding AI, including Big Tech’s data access advantages for AI training, the impact of generative AI on creative markets, and potential collaboration between companies to circumvent merger review processes.
This division of investigation responsibilities mirrors a similar 2019 agreement between the agencies, which led to enforcement actions against major tech firms such as Meta and Amazon by the FTC, and lawsuits filed by the DOJ against Apple and Google. These cases are ongoing, with the companies denying any wrongdoing.
Although OpenAI operates as a nonprofit, Microsoft’s significant investment of $13 billion in a for-profit subsidiary, granting a 49% stake, raises scrutiny.
The Justice Department will spearhead the probe into potential antitrust violations by Nvidia, while the FTC will scrutinize the actions of OpenAI and Microsoft.
The agreement between regulators was reached over the past week and is anticipated to be finalized in the coming days, according to the source.
Nvidia currently commands approximately 80% of the AI chip market, including custom AI processors used by major cloud computing players like Google, Microsoft, and Amazon. This dominance has enabled Nvidia to maintain gross margins between 70% and 80%.
Spokespeople for Nvidia and OpenAI declined to comment on the agreement between regulators, while Microsoft emphasized its commitment to compliance with legal obligations regarding transactions.