The U.K. and the U.S. have launched an investigation into the “bias acquisition” of Big Tech (giant information and communication company) that only recruits talent and technology without acquiring AI start-ups with excellent technology. It is to check whether Big Tech’s technology and talent recruitment method are intended to avoid this, as the acquisition of a start-up requires strict anti-trust screening by competition authorities.
The U.K.’s Competition Market Authority (CMA) said it will investigate whether Microsoft will seek mergers and acquisitions under U.K. regulations regarding the recruitment of the co-founder and staff of Inflection. In March, Microsoft recruited Mustafa Suleiman, famous as a co-founder of AI company DeepMind, as the chief executive of Microsoft’s AI business. Suleiman is the co-founder of Inflection, and most of the 70 employees were also hired. However, suspicions have been raised that Microsoft’s hiring of Suleiman and his staff is a “bias acquisition” of AI start-ups to avoid anti-trust screening.
The CMA plans to check whether Microsoft’s hiring of Inflection co-founders and employees constitutes a merger and acquisition that could weaken the competitiveness of the AI sector. The CMA will first launch the first investigation, and through this, if further investigation is needed, it will enter into the second phase of a full-scale investigation. The CMA plans to announce whether it will launch an in-depth investigation by September 11. Regarding the launch of the CMA’s investigation, MS said, “We are confident that hiring talent promotes competition and should not be treated as a merger.”
The U.S. Federal Trade Commission (FTC) also conducts an informal investigation into transactions between Amazon, the world’s largest e-commerce company, and Adopt, an AI agent development startup.
Amazon announced late last month that it has acquired Adept CEO and talented employees and licenses for technologies such as Adept’s AI systems. Adept said, “It takes a lot of capital to develop its own AI model,” adding, “The agreement with Amazon has enabled us to focus on building AI agents.”
However, Senate Financial Services Committee Chairman Ron Wyden and three other senators sent a letter to the U.S. Department of Justice and the FTC earlier this month calling for an investigation into the “bias acquisition.” “Some companies are just trying to buy other people’s talents rather than take control of key parts of the market and focus on innovation,” they argued.
The FTC is also investigating Microsoft’s “bias acquisition.” It is also checking whether Big Tech’s large-scale investment in AI startups is actually an acquisition. Along with a partnership between the two companies, which Microsoft invested $13 billion in ChatGPT developer OpenAI, Microsoft’s investment in French AI startup Mistral in January is also on the list.
SALLY LEE
US ASIA JOURNAL
