Google requests FTC to break up Microsoft-OpenAI’s cloud deal – report

Alphabet’s (GOOG) (GOOGL) unit Google has requested the U.S. Federal Trade Commission to break up Microsoft’s (NASDAQ:MSFT) exclusive deal to host OpenAI’s technology on its cloud servers, The Information reported.

The discussions occurred after the U.S. regulator asked Google about Microsoft’s business practices as part of a broader probe, the report added, citing a person involved in the talks.

Microsoft’s competitors in the cloud server space, such as Google, also want to host OpenAI’s large language models, or LLMs, so that their cloud customers do not need to access Microsoft’s servers to get access to the ChatGPT-maker’s technology, the report noted.

Companies that buy OpenAI’s technology via Microsoft may have to see additional charges if they do not already use Microsoft’s servers to carry out their operations, the report added.

Google and other rivals have highlighted that these new costs will impact customers, the report noted.

Microsoft, Google, OpenAI and the FTC did not respond to an email from Seeking Alpha till the time of publication of this report.