Google isn’t particularly happy about the deal Microsoft has with OpenAI to host its technology on Microsoft servers, so it has now asked the FTC to step in and force Microsoft to end its deal with the ChatGPT maker.
Google’s request stems from the fact that Microsoft has an exclusivity deal to hops OpenAI technology on Microsoft’s cloud servers, which the company says has the potential to harm customers. According to The Information (via Reuters), Google was asked about Microsoft’s business practices as part of a larger investigation. In that investigation, which the FTC opened on November 28, the US regulator said it was interested in learning more about how Microsoft bundles its services.
Particularly how it integrates its cloud computing services with other services it offers. Such as Office and some of its security products. The FTC was also interested in how it integrates technology from OpenAI into services. Mainly Azure, its cloud hosting service, and Bing, its competitor to Google Search.
Google tells the FTC that Microsoft exclusively hosting OpenAI tech could cost customers more money
The main issue that Google seems to take with Microsoft’s partnership with OpenAI appears to be one of cost. Google says in its request that it could end up costing customers more money.
According to the report, customers who buy the use of OpenAI through Microsoft may need to cough up additional fees. Although, only if they don’t already use Microsoft’s Azure hosting services. What Google wants is a more fair distribution for its own cloud computing customers. The request mentions that Google doesn’t want customers who use Google Cloud to be required to access Microsoft’s servers to get access to OpenAI.
Google’s request is understandable. The company might fear that additional charges would convince customers to switch to using Microsoft for a cheaper rate. The report also mentions “competitors” share the same concern, but doesn’t mention those competitors by name. It’s possible and entirely likely that this includes Amazon, which has its own web-hosting service with AWS.
The FTC may take a closer look at Microsoft’s partnership
While the request doesn’t mention the FTC’s plans moving forward, the fact that these concerns were brought up could pose a problem for Microsoft. The FTC is already investigating the company over its business practices. So perhaps it was inevitable for these concerns to surface. Now that they’ve been voiced, the FTC could choose to take a closer look at Microsoft’s partnership with OpenAI.
The partnership started a few years ago and resulted in two large investments on Microsoft’s end. One for around $1 billion back in 2019, and another in 2023 for $10 billion. The second investment cemented Microsoft’s position as the exclusive cloud provider for OpenAI. Google’s concern over the cost to customers, seems like a good reason for the FTC to dig deeper. That being said, this investigation is still fresh. It could be a while before the FTC confirms what it plans to do.