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Why the FTC and DOJ Were Reported to Be Investigating Nvidia, Microsoft, and OpenAI

The June 2024 AP report described a planned DOJ–Nvidia and FTC–Microsoft/OpenAI split, but did not announce agency findings. Here’s how it differs from the FTC’s AI partnership study and later policy actions.
From TheFinanceBase Team4 min to read
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On June 6, 2024, the Associated Press reported that the Department of Justice would investigate Nvidia while the Federal Trade Commission would scrutinize Microsoft and OpenAI. The report cited two people familiar with pending actions who were not authorized to discuss them publicly; it was not an agency announcement or a finding that any company broke the law.

What the June 2024 report said

The AP described a reported division of attention: DOJ scrutiny of Nvidia and FTC scrutiny of Microsoft and OpenAI. It noted that Microsoft was a major provider of computing resources to OpenAI and that Nvidia chips were widely used in AI applications. Those roles help explain why the companies matter to the AI ecosystem, but do not establish antitrust liability. The AP report attributed the planned actions to anonymous sources. It did not say that the agencies had publicly confirmed the specific allocation, filed cases, or reached conclusions.

How the reported probes differ from the FTC’s AI partnership study

The June report is easy to confuse with a separate FTC initiative announced months earlier. On January 25, 2024, the FTC said it had issued compulsory orders to five companies—Alphabet, Amazon, Anthropic, Microsoft, and OpenAI—as part of a Section 6(b) study of generative AI investments and partnerships with cloud providers. The study sought information to help the agency understand the relationships and their competitive effects; it was not a determination that any law had been violated. The FTC said the orders asked about partnership terms, product and governance decisions, competitive effects, and access to AI inputs. Companies had 45 days from receipt of an order to respond.

FTC Chair Lina M. Khan described the purpose of that study this way: “Our study will shed light on whether investments and partnerships pursued by dominant companies risk distorting innovation and undermining fair competition.” That was a statement of what the study was meant to examine, not a conclusion about a company.

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What the FTC’s January 2025 report added—and what it did not

In January 2025, the FTC published a staff report about selected cloud-provider and AI-developer partnerships: Microsoft–OpenAI, Amazon–Anthropic, and Alphabet–Anthropic. It discussed equity and revenue-sharing rights, consultation, control and exclusivity provisions, cloud-spending commitments, shared computing resources and information, and opportunities to integrate AI models into cloud products. The report identified possible competition concerns involving access to computing and engineering talent, switching costs, and access to sensitive technical or business information. The agency said the report reflected staff information through September 2024 and publicly available information through January 2025.

Khan characterized the implications as follows: “The FTC’s report sheds light on how partnerships by big tech firms can create lock-in, deprive start-ups of key AI inputs, and reveal sensitive information that can undermine fair competition.” The staff report examined selected partnerships; it was not a verdict on the separately reported Nvidia inquiry or proof that Microsoft or OpenAI violated antitrust law.

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How to distinguish the main developments

Development Date and character What it establishes What it does not establish
FTC Section 6(b) study January 2024; formal information-gathering The FTC ordered five companies to provide information about generative AI investments and cloud partnerships. A law-enforcement finding or proof of a violation.
Reported DOJ and FTC probes June 2024; AP account based on anonymous sources AP reported that DOJ would investigate Nvidia and FTC would scrutinize Microsoft and OpenAI. Public agency confirmation, a filed case, a finding, or the current status of the reported actions.
FTC staff report January 2025; analysis of selected partnerships FTC staff described partnership terms and potential competition concerns in three pairings. A conclusion on the reported Nvidia inquiry or proof of unlawful conduct by Microsoft or OpenAI.
Joint AI competition statement July 2024; broad policy statement The FTC, DOJ Antitrust Division, European Commission, and UK CMA highlighted fair dealing, interoperability, and choice as principles that can support competition. A case-specific outcome for Nvidia, Microsoft, or OpenAI.

Broader AI competition policy is not a case outcome

In July 2024, the FTC and DOJ Antitrust Division joined the European Commission and UK Competition and Markets Authority in a statement on competition issues in AI. The agencies said questions depend on the facts and expressed vigilance and an intention to use available powers. The statement identified fair dealing, interoperability, and choice as principles that can support competition; it did not announce a result for the companies named in the June AP story.

A later Microsoft report described a different scope

In December 2024, AP separately reported that the FTC had opened a broader investigation into Microsoft’s business practices, including cloud computing and related AI and cybersecurity product lines. That report also relied on an anonymous source. It described a later development with a broader stated scope, not a confirmed disposition of the specific actions reported in June.

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What is known about the investigations’ current status

The sources cited here do not establish the current disposition of the specific investigations described in the June 2024 AP report. The formal FTC materials document the Section 6(b) study, the staff report, and general competition policy, but do not say whether the reported Nvidia and OpenAI investigations remain open, were closed, or produced findings. No such outcome should be inferred from the June report or the later FTC materials.

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