The Federal Trade Commission has opened an investigation into Big Tech’s artificial intelligence arms race. Specifically, the agency has ordered five companies to provide information under what it calls a “6(b) inquiry,” targeting Amazon and Google’s strategic alliance with Anthropic, and Microsoft’s investment in OpenAI. The scrutiny aims “to build a better internal understanding of these relationships and their impact on the competitive landscape.” In other words, the government does not want another free for all, along the lines of social media’s growth, which saw big players acquire startups competing in the space.

The inquiry addresses “mounting concerns that the AI revolution is only deepening the power of a handful of companies that have long dominated the Internet economy,” according to The Washington Post.

FTC Chair Lina Khan revealed the inquiry during the agency’s January 25 tech summit on AI, describing it as a “market inquiry into the investments and partnerships being formed between AI developers and major cloud service providers,” per CNBC.

“History shows that new technologies can create new markets and healthy competition. As companies race to develop and monetize AI, we must guard against tactics that foreclose this opportunity,” Khan said in a statement. “Our study will shed light on whether investments and partnerships pursued by dominant companies risk distorting innovation and undermining fair competition.”

“The FTC’s inquiry will examine how these investment deals alter the competitive landscape and could inform any investigations by federal antitrust regulators into whether the deals have broken laws,” writes The New York Times.

Amazon has committed up to $4 billion to Anthropic, while Google has agreed to invest $2 billion. Microsoft has earmarked $13 billion for OpenAI for what is described as a 49 percent stake. The multiyear deals see the companies allocating funds over time, and also contributing cloud computing services. In the most general terms, as consideration the investors get an inside track on developing AI technologies.

“The FTC said it would ask Microsoft, OpenAI, Amazon, Google and Anthropic to describe their influence over their partners and how they worked together to make decisions,” summarizes NYT, citing board seats and influence as areas of focus. The FTC says it is seeking specifics on “agreements and the strategic rationale of an investment/partnership.”

CNBC explains that by invoking its authority under 6(b) — “named for Section 6(b) of the FTC Act” — the regulator can make a civil inquiry, ordering reports or that questions be answered in writing, as opposed to its criminal law enforcement actions.

“I hope everyone would agree that companies should be allowed to partner and invest in each other,” WaPo quotes OpenAI CEO Sam Altman saying at last week’s World Economic Forum in Davos. “I’m sure Satya [Nadella, CEO of Microsoft] wishes sometimes he could tell us what to do.”

Additionally, the FTC wants to know of any “information provided to any other government entity, including foreign government entities,” related to the AI activities under review.

“Other regulators internationally are also examining some of the Big Tech companies’ investments in AI startups,” NYT writes. “Last month, the Competition and Markets Authority, a British regulator, said that it was reviewing whether Microsoft’s deal with OpenAI was a merger that fell under its purview and would harm competition in the economy.”

“The European Commission also said it was looking at whether its antitrust laws could apply,” reports NYT.