Two U.S. senators have raised concerns over cloud computing partnerships between Microsoft and Google with artificial intelligence companies, fearing the deals could hinder competition in the rapidly growing industry.
Senators Elizabeth Warren and Ron Wyden, ranking members of the Senate banking and finance committees, respectively, have demanded information from both companies about their arrangements with AI startups. Microsoft has a partnership with OpenAI, the creator of ChatGPT, while Google is tied to AI startup Anthropic.
In their letters to the tech giants, the senators expressed concerns that such corporate partnerships may discourage competition, bypass antitrust laws, and lead to higher prices and fewer options for businesses and consumers using AI tools. They are seeking details on the financial terms of these partnerships, including how much the AI companies have paid to cloud providers, whether the deals grant Microsoft and Google exclusive rights to license AI models, and whether the companies have plans to acquire their AI partners.
The U.S. Federal Trade Commission (FTC) issued a report earlier this year, before President Donald Trump’s tenure, investigating cloud and AI company partnerships, including those between Microsoft, OpenAI, Amazon, and Anthropic. While some information was withheld, the report noted that at least one agreement could prevent an AI company from launching new models independently without releasing them through its cloud provider.
The FTC also raised concerns over the potential for cloud providers to acquire their AI partners, which could further consolidate power in the industry.
