US Regulatory Agencies Set Sights on AI Market Dominance

The US DOJ and FTC reportedly agreed to divide responsibility for investigating Nvidia, Microsoft and OpenAI, the three major players in the artificial intelligence industry.

The US Justice Department and Federal Trade Commission reportedly plan investigations into whether Nvidia, Microsoft, and OpenAI are hampering competition in artificial intelligence technology. 

The New York Times reported that the Justice Department will focus on Nvidia, while the FTC will concentrate on Microsoft and OpenAI.

According to Ars Technica, one area of focus for the DOJ will be Nvidia’s dominance in the chip industry, particularly how the company’s software may lock customers into using its chips. Nvidia declined to comment on the matter.

In an interview with the Financial Times, Assistant Attorney General Jonathan Kanter highlighted that the DOJ is examining potential “monopoly choke points and the competitive landscape” within AI, ranging from computing power to essential hardware such as GPUs.

"Sometimes the most meaningful intervention is when the intervention is in real time," Kanter told the Financial Times. "The beauty of that is you can be less invasive."

The FTC’s probe into Microsoft includes scrutiny of a March 2024 deal whereby Microsoft hired the CEO of AI startup Inflection and most of its staff, along with paying $650 million to license Inflection’s technology. The Wall Street Journal reported that the FTC is investigating if Microsoft structured the deal to avoid government antitrust review.

Microsoft’s investment and profit-sharing agreement with OpenAI have also faced regulatory scrutiny. Microsoft President Brad Smith defended the partnership, asserting that it has added competition to the AI marketplace, a statement reported by the Financial Times. 

 

Customer Stories

See how leading enterprise in-house teams have scaled smarter with Legal.io's high-caliber flex talent.

More from Legal.io


Legal.io Newsletter - July 9, 2021
Legal.io Newsletter - July 9, 2021

Published weekly on Friday, the Legal.io Newsletter covers the latest in legal, talent & tech.

Jul 09, 2021
Read More
Harvard, Duke Law Schools Drop from Top 5 in 2025 U.S. News Rankings

Harvard and Duke Law Schools dropped out of the top five in the 2025 U.S. News rankings, while Stanford and Yale maintained their shared first-place positions.

Apr 15, 2025
Read More
How to Maximize Paralegal Support
How to Maximize Paralegal Support

Are you getting the most out of your paralegals or considering hiring one? Maximize the support you receive using these simple steps.

May 10, 2016
Read More
Agiloft Taps Longtime Microsoft Leader As CLO Amid Accelerated CLM, AI Transformation

Agiloft appoints former Microsoft legal ops veteran Jason Barnwell as CLO as the KKR-backed CLM provider deepens its AI strategy and seeks transformational contracting leadership.

Dec 04, 2025
Read More
DACA Expansion and Creation of DAPA- Things to Know
DACA Expansion and Creation of DAPA- Things to Know

As with all immigration changes, it’s important to educate yourself and be aware of timelines, requirements for applying, and the potential scams that often happen when such relief measures are announced.

Aug 19, 2015
Read More
Ready to hire?

Schedule a free consultation to discuss your hiring needs.

Free 15-min consultation
Legal.io Platform
5 star reviews
Hiring made smarter

Easy-to-use platform for hiring legal talent, managing spend, and optimizing your panel — plus an average savings of 50%.

Need Immediate Help?

Submit a hiring request and let our experts handle the entire process for you.