Report: Google Asks FTC to End Microsoft-OpenAI Cloud Deal

Google reportedly asked the Federal Trade Commission (FTC) to end Microsoft’s exclusive agreement to host OpenAI’s technology on its cloud servers.

The company did so after the agency asked it about Microsoft’s business practices as part of a broader investigation, The Information reported Tuesday (Dec. 10), citing an unnamed source.

Reached by PYMNTS, the FTC, Google and Microsoft declined to comment on the report.

OpenAI did not immediately reply to PYMNTS’ request for comment.

Cloud service providers like Google want to be able to host OpenAI’s AI models so that their customers can access that technology without having to access Microsoft servers, Reuters reported Wednesday (Dec. 11), citing The Information’s paywalled article.

Companies that buy OpenAI’s technology through Microsoft may see additional charges if they don’t use the company’s servers to run their operations, according to the report.

It was reported in November that the FTC was set to investigate allegedly anticompetitive practices at Microsoft’s cloud computing business.

The regulator will focus on allegations that the tech giant illegally uses the market power of its Office 365 productivity software to benefit its Azure cloud service, Reuters reported Nov. 14.

The Financial Times reported the same day that the probe had not yet reached the stage where the FTC would formally request information from Microsoft.

After reports surfaced that details of an antitrust investigation into the tech giant were leaked, Microsoft formally requested an investigation into the FTC.

The company asked the FTC’s inspector general to examine whether senior management at the agency disclosed nonpublic information about the probe and to release its findings publicly.

The FTC said in March 2023 that it was seeking comments on the business practices of cloud computing providers that could impact competition and data security.

The agency said it was especially concerned about the reliance of certain segments of the economy on a handful of cloud service providers, the ability or inability of customers to negotiate their contracts with cloud providers, and incentives providers offer to use more than one of their services.

In November 2023, the FTC said its request for information about cloud computing providers’ business practices raised “a number of issues.”