Google Challenges Microsoft's OpenAI Hosting Deal

Google has requested the U.S. Federal Trade Commission (FTC) to dismantle Microsoft’s exclusive agreement to host OpenAI’s technology on its cloud servers, citing anti-competitive practices. This appeal is part of a broader investigation by the FTC into Microsoft’s business practices. Competitors, including Google and Amazon, argue that the deal forces cloud customers to rely on Microsoft servers, potentially incurring additional costs, which they claim could negatively impact customers by limiting flexibility and increasing expenses. Microsoft reportedly generated about $1 billion in 2024 from reselling OpenAI's models, benefitting significantly from the exclusive arrangement. The controversy highlights growing tensions in the cloud computing market, as companies vie for dominance in the rapidly expanding AI-driven sector. Regulators are scrutinizing these practices to ensure fair competition and innovation.