The Federal Trade Commission is investigating Amazon’s partnership with AI startup Adept

Earlier this week, the Competition and Markets Authority in the UK (CMA) announced an examination into a comparable arrangement by Microsoft, who brought on board most of the staff from the startup, Inflection, for its consumer-focused AI division. In June, the FTC also initiated a probe to establish the possibility of an undisclosed acquisition through the recruitment of key staff members and the licensing agreement with Inflection.

AI advancement under scrutiny

The expansion of AI capabilities has become a necessity for technology firms. Faisal Kawoosa, the principal analyst at Techarc, highlighted that Amazon has been trailing behind in its AI progress compared to other major technology firms, prompting the need for exploring external growth strategies.

“We have observed a similar tactic with Apple, which acquired a startup like DarwinAI due to uncertainties in their ecosystem,” Kawoosa noted. “Regarding this inquiry, it seems to be in the preliminary stages to decide if it requires further investigation. Regulatory bodies are evaluating whether any aspects of this deal breach trade regulations.”

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AndyC

Andy Curtis is an award-winning security consultant, researcher and public speaker. He has been working in the computer security industry since the early 1990s, having been employed by state and federal government, leading healthcare and banking providers across three continents. He has given talks about computer security for some of the world’s largest companies, worked with law enforcement agencies on investigations into hacking groups, and is a regular voice on TV and radio explaining IT security threats.

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