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Microsoft Faces Scrutiny Over AI Dominance

Microsoft is facing growing pressure from U.S. regulators as the Federal Trade Commission (FTC) continues its antitrust investigation into the tech giant’s aggressive investments in artificial intelligence. The concern? That Microsoft is using its deep pockets and dominant position to outpace competitors unfairly—especially startups in the AI space.

At the center of this scrutiny is Microsoft’s high-profile partnership with OpenAI. While the companies are technically separate, the level of integration—Microsoft powers OpenAI’s models on Azure and embeds them into its products—has raised eyebrows.

The FTC wants to understand whether Microsoft is creating an AI ecosystem so tightly controlled that it becomes impossible for smaller players to compete. Think of it like building a highway system but only letting your own cars on it.

What makes this case more complex is that Microsoft isn’t acquiring these companies outright (which would normally trigger regulatory review). Instead, they’re using strategic partnerships, multi-billion-dollar investments, and long-term licensing deals to gain influence—what some call “acqui-hiring by stealth.”

This investigation is part of a broader effort to ensure Big Tech doesn’t repeat past monopolistic patterns in the AI era. Google, Amazon, and Meta are all under similar watch, but Microsoft has drawn particular attention due to how quickly it’s moved to commercialize AI tools across Office, Teams, Azure, and Windows.

Whether the FTC will take action remains to be seen. But one thing is clear: AI is the new battleground for antitrust, and Microsoft is right at the center of it.

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