Google Wants FTC To Dismantle Microsoft's Exclusive Cloud Hosting Deal With OpenAI: Report

Alphabet Inc.'s GOOG GOOGL Google has reportedly requested the U.S. Federal Trade Commission to dismantle Microsoft Corporation’s MSFT exclusive agreement to host OpenAI’s technology on its cloud servers

What Happened: This request came after the FTC inquired with Google regarding Microsoft's business practices as part of a larger investigation, reported Reuters citing The Information.

Tech giants like Google and Amazon.com, Inc. AMZN are keen to host OpenAI’s models.

However, they argue that Microsoft’s exclusive deal forces cloud customers to rely on Microsoft servers, potentially incurring additional costs, the report noted.

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Google and Microsoft did not immediately respond to Benzinga's request for comments.

Why It Matters: The tension between Google and Microsoft over AI dominance has been brewing for some time.

Earlier this year during an antitrust case against Google, an internal email from Microsoft revealed that the investment in OpenAI was driven by fears of lagging behind Google’s AI capabilities.

In September 2024, Google filed a complaint with the European Commission, alleging that Microsoft engaged in anti-competitive behavior within its cloud services sector.

The following month, Microsoft retaliated by accusing Google of conducting secret lobbying efforts aimed at disrupting its cloud computing operations.

Previously it was also reported that insiders at Microsoft have voiced worries that the company’s AI strategy is overly dependent on its partnership with OpenAI.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.