As competition in the cloud computing and artificial intelligence market intensifies, the clash between tech giants has further escalated. On December 10, according to a report by The Information, Google has filed a request with the United States Federal Trade Commission (FTC) to terminate the exclusive cloud service agreement between Microsoft and OpenAI. This agreement makes Microsoft the sole cloud service provider for OpenAI technology, causing dissatisfaction among Google and other competitors.
The FTC, as the main federal antitrust enforcement agency in the United States, is investigating whether the cooperation between Microsoft and OpenAI imposes unfair restrictions on market competition. Google made this request during the FTC's investigation and expressed concerns about Microsoft's business practices. Google believes the exclusive agreement limits other tech companies, such as Google and Amazon, in their options to host OpenAI models, forcing their cloud clients to rely heavily on Microsoft's Azure servers.
Through the exclusive agreement, Microsoft secures a 20% share of OpenAI's revenue, which reduces the competitive impetus between Microsoft and OpenAI. Meanwhile, Microsoft’s Azure cloud services, empowered by the exclusive hosting capability for OpenAI technology, have attracted clients from companies like Snap and Intuit, which have had to increase their spending on Microsoft's platform to utilize OpenAI's large language models (LLMs).
A Google spokesperson stated in a declaration that the company is committed to building the "most open AI ecosystem" and mentioned that Google Cloud aims to host as many AI models as possible. This vision directly conflicts with Microsoft's exclusive hosting agreement, which Google and other competitors argue increases the cost of user migration and training, potentially hindering fair competition in the AI market.
Currently, OpenAI's large language models hold a dominant market position, anticipated to generate $3 billion in revenue this year, and Microsoft has reaped substantial economic benefits by reselling these models. In contrast, although Google and Amazon have launched their own AI models, their market performance lags far behind OpenAI.
The FTC's investigation extends beyond Microsoft's exclusive agreement with OpenAI, also covering Microsoft's software licensing practices, cybersecurity business, and its growing AI product line. These issues are considered critical factors in shaping the future competitive landscape of the tech industry. Analysts suggest that if the FTC finds the agreement violates antitrust laws, Microsoft could be required to relinquish its exclusive hosting rights, opening the market space for competitors like Google and Amazon.
The competition in the AI market is becoming increasingly fierce, particularly in the field of generative AI, with OpenAI's large models widely recognized as the industry standard. The battle among tech giants for AI technology, data infrastructure, and cloud computing services has become a critical battleground influencing market dynamics. In the future, the FTC's investigation results could redefine competitive rules in the AI market and promote higher levels of market transparency and openness.
