The regulator has ordered the five firms involved in the Microsoft-OpenAI, Amazon-Anthropic and Google-Anthropic investments to explain their strategic reasons for partnering; their governance relationships; how the tie-ups influence product releases; and how the firms see the deals affecting competition in the field. (The Logic)

Talking point: Building the models that underpin the most gee-whiz generative tools like ChatGPT requires a lot of computing power, and capital. The deals the FTC are inquiring about give private firms OpenAI and Anthropic access to both, and tie them to the cloud arms of Microsoft and Amazon, respectively. Regulators worry they could become a new way for Big Tech to keep other firms out of the market. Amazon, Google and Microsoft do all host model marketplaces, where corporate clients can access the models of the firms in which they’ve invested, as well as those of other startups and open-source offerings. Rima Alaily, corporate vice-president in Microsoft’s competition and market regulation group, said partnerships like the one it has with OpenAI “are promoting competition and accelerating innovation.” Google spokesperson Anna Kowalczyk said the firm hopes the FTC study will “shine a light on companies that don’t offer the openness” of its cloud arm or “have a long history of locking in customers.” Amazon and Anthropic declined to comment. OpenAI did not respond to a request for comment.