As British Regulators Scrutinize Microsoft and Amazon AI Deals, Industry Braces for Impact

PYMNTS.com April 24, 2024

British antitrust authorities are soliciting opinions on the implications of partnerships between tech giants Microsoft and Amazon and smaller generative artificial intelligence (AI) model developers amid growing concerns about competition and innovation in the sector.

This inquiry could reshape the AI industry’s landscape. Some experts warned that a strict antitrust ruling may not only alter how major corporations interact with emerging AI firms but could also dampen enthusiasm for new partnerships, possibly stalling the pace of innovation.

“A direct ruling that prohibits exclusive partnerships or creates substantial barriers to building direct partnerships between generative AI companies and the major tech companies will likely make capital more difficult to obtain and would therefore slow their growth,” Ryan M. Yonk, a...

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