Google requests the Federal Trade Commission to terminate Microsoft's cloud deal with OpenAI
Google has requested the U.S. government to terminate Microsoft's exclusive hosting agreement for OpenAI technology on its cloud servers. This request comes in the context of an investigation by the U.S. Federal Trade Commission into Microsoft's business practices. Google and other competitors, such as Amazon, hope to host OpenAI models so that customers do not have to access Microsoft's servers. This incident reflects the intense competition in the cloud server market and the complex relationships between large technology companies
According to Zhitong Finance APP, Google (GOOGL.US) has officially requested the U.S. government to terminate Microsoft's (MSFT.US) exclusive agreement to host OpenAI technology on its cloud servers. This request comes amid a broader investigation by the U.S. Federal Trade Commission into Microsoft's business practices, as revealed by a person directly involved in the discussions.
It is reported that the dialogue was initiated when the U.S. Federal Trade Commission inquired about Microsoft's business practices during its investigation. Tech companies like Google and Amazon (AMZN.US), as competitors of Microsoft in the cloud server market, also hope to host OpenAI's models. This would allow their cloud customers to use OpenAI's technology without having to access Microsoft's servers.
The report points out that for companies that have not yet operated on Microsoft's servers, purchasing technology from OpenAI, the maker of ChatGPT, through Microsoft may incur additional costs. Google and other competitors emphasize that these added costs will harm customer interests.
However, Google declined to comment on the information report. As for Microsoft, OpenAI, and the Federal Trade Commission, they have yet to respond to Reuters' request for comment. Overall, this incident reflects the intense competitive landscape in the cloud server market and the complex relationships between large tech companies regarding technology hosting and collaboration