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


FCC Proposes Rules to Strengthen BGP Security
FCC Proposes Rules to Strengthen BGP Security

The FCC has issued a Notice of Proposed Rulemaking to address security vulnerabilities in the Border Gateway Protocol (BGP), requiring large broadband providers to develop comprehensive BGP Risk Management Plans and submit detailed quarterly reports.

Jun 21, 2024
Read More
Shifts in Partner Retention and Mobility Within Elite Law Firms

A handful of Big Law firms known for partner retention are seeing unexpected departures in 2025, highlighting vulnerabilities in compensation structures and market shifts.

Feb 15, 2025
Read More
Legal.io Newsletter - February 3, 2023 Edition #144
Legal.io Newsletter - February 3, 2023 Edition #144

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

Feb 03, 2023
Read More
AI Missteps In Court Filings Push Legal Industry Toward Mandatory Education

A rise in AI-related sanctions is driving rapid growth in legal education programs as judges, bars, and firms press lawyers to take responsibility for generative AI use.

Dec 19, 2025
Read More
ExxonMobil Announces Legal Leadership Transition
ExxonMobil Announces Legal Leadership Transition

ExxonMobil announced Craig Morford, Vice President, General Counsel, and Secretary, will retire on July 1, 2024, and will be succeeded by Jeff Taylor, who brings extensive legal and corporate governance experience.

Jun 13, 2024
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.