microsoft

all-the-possible-ways-to-destroy-google’s-monopoly-in-search

All the possible ways to destroy Google’s monopoly in search

All the possible ways to destroy Google’s monopoly in search

Aurich Lawson

After US District Judge Amit Mehta ruled that Google has a monopoly in two markets—general search services and general text advertising—everybody is wondering how Google might be forced to change its search business.

Specifically, the judge ruled that Google’s exclusive deals with browser and device developers secured Google’s monopoly. These so-called default agreements funneled the majority of online searches to Google search engine result pages (SERPs), where results could be found among text ads that have long generated the bulk of Google’s revenue.

At trial, Mehta’s ruling noted, it was estimated that if Google lost its most important default deal with Apple, Google “would lose around 65 percent of its revenue, even assuming that it could retain some users without the Safari default.”

Experts told Ars that disrupting these default deals is the most obvious remedy that the US Department of Justice will seek to restore competition in online search. Other remedies that may be sought range from least painful for Google (mandating choice screens in browsers and devices) to most painful (requiring Google to divest from either Chrome or Android, where it was found to be self-preferencing).

But the remedies phase of litigation may have to wait until after Google’s appeal, which experts said could take years to litigate before any remedies are ever proposed in court. Whether Google could be successful in appealing the ruling is currently being debated, with anti-monopoly advocates backing Mehta’s ruling as “rock solid” and critics suggesting that the ruling’s fresh takes on antitrust law are open to attack.

Google declined Ars’ request to comment on appropriate remedies or its plan to appeal.

Previously, Google’s president of global affairs, Kent Walker, confirmed in a statement that the tech giant would be appealing the ruling because the court found that “Google is ‘the industry’s highest quality search engine, which has earned Google the trust of hundreds of millions of daily users,’ that Google ‘has long been the best search engine, particularly on mobile devices,’ ‘has continued to innovate in search,’ and that ‘Apple and Mozilla occasionally assess Google’s search quality relative to its rivals and find Google’s to be superior.'”

“Given this, and that people are increasingly looking for information in more and more ways, we plan to appeal,” Walker said. “As this process continues, we will remain focused on making products that people find helpful and easy to use.”

But Mehta found that Google was wielding its outsize influence in the search industry to block rivals from competing by locking browsers and devices into agreements ensuring that all searches went to Google SERPs. None of the pro-competitive benefits that Google claimed justified the exclusive deals persuaded Mehta, who ruled that “importantly,” Google “exercised its monopoly power by charging supra-competitive prices for general search text ads”—and thus earned “monopoly profits.”

While experts think the appeal process will delay litigation on remedies, Google seems to think that Mehta may rule on potential remedies before Google can proceed with its appeal. Walker told Google employees that a ruling on remedies may arrive in the next few months, The Wall Street Journal reported. Ars will continue monitoring for updates on this timeline.

As the DOJ’s case against Google’s search business has dragged on, reports have long suggested that a loss for Google could change the way that nearly the entire world searches the Internet.

Adam Epstein—the president and co-CEO of adMarketplace, which bills itself as “the largest consumer search technology company outside of Google and Bing”—told Ars that innovations in search could result in a broader landscape of more dynamic search experiences that draw from sources beyond Google and allow searchers to skip Google’s SERPs entirely. If that happens, the coming years could make Google’s ubiquitous search experience today a distant memory.

“By the end of this decade, going to a search engine results page will seem quaint,” Epstein predicted. “The court’s decision sets the stage for a remedy that will dramatically improve the search experience for everyone connected to the web. The era of innovation in search is just around the corner.”

The DOJ has not meaningfully discussed potential remedies it will seek, but Jonathan Kanter, assistant attorney general of the Justice Department’s antitrust division, celebrated the ruling.

“This landmark decision holds Google accountable,” Kanter said. “It paves the path for innovation for generations to come and protects access to information for all Americans.”

All the possible ways to destroy Google’s monopoly in search Read More »

elon-musk-sues-openai,-sam-altman-for-making-a-“fool”-out-of-him

Elon Musk sues OpenAI, Sam Altman for making a “fool” out of him

“Altman’s long con” —

Elon Musk asks court to void Microsoft’s exclusive deal with OpenAI.

Elon Musk and Sam Altman share the stage in 2015, the same year that Musk alleged that Altman's

Enlarge / Elon Musk and Sam Altman share the stage in 2015, the same year that Musk alleged that Altman’s “deception” began.

After withdrawing his lawsuit in June for unknown reasons, Elon Musk has revived a complaint accusing OpenAI and its CEO Sam Altman of fraudulently inducing Musk to contribute $44 million in seed funding by promising that OpenAI would always open-source its technology and prioritize serving the public good over profits as a permanent nonprofit.

Instead, Musk alleged that Altman and his co-conspirators—”preying on Musk’s humanitarian concern about the existential dangers posed by artificial intelligence”—always intended to “betray” these promises in pursuit of personal gains.

As OpenAI’s technology advanced toward artificial general intelligence (AGI) and strove to surpass human capabilities, “Altman set the bait and hooked Musk with sham altruism then flipped the script as the non-profit’s technology approached AGI and profits neared, mobilizing Defendants to turn OpenAI, Inc. into their personal piggy bank and OpenAI into a moneymaking bonanza, worth billions,” Musk’s complaint said.

Where Musk saw OpenAI as his chance to fund a meaningful rival to stop Google from controlling the most powerful AI, Altman and others “wished to launch a competitor to Google” and allegedly deceived Musk to do it. According to Musk:

The idea Altman sold Musk was that a non-profit, funded and backed by Musk, would attract world-class scientists, conduct leading AI research and development, and, as a meaningful counterweight to Google’s DeepMind in the race for Artificial General Intelligence (“AGI”), decentralize its technology by making it open source. Altman assured Musk that the non-profit structure guaranteed neutrality and a focus on safety and openness for the benefit of humanity, not shareholder value. But as it turns out, this was all hot-air philanthropy—the hook for Altman’s long con.

Without Musk’s involvement and funding during OpenAI’s “first five critical years,” Musk’s complaint said, “it is fair to say” that “there would have been no OpenAI.” And when Altman and others repeatedly approached Musk with plans to shift OpenAI to a for-profit model, Musk held strong to his morals, conditioning his ongoing contributions on OpenAI remaining a nonprofit and its tech largely remaining open source.

“Either go do something on your own or continue with OpenAI as a nonprofit,” Musk told Altman in 2018 when Altman tried to “recast the nonprofit as a moneymaking endeavor to bring in shareholders, sell equity, and raise capital.”

“I will no longer fund OpenAI until you have made a firm commitment to stay, or I’m just being a fool who is essentially providing free funding to a startup,” Musk said at the time. “Discussions are over.”

But discussions weren’t over. And now Musk seemingly does feel like a fool after OpenAI exclusively licensed GPT-4 and all “pre-AGI” technology to Microsoft in 2023, while putting up paywalls and “failing to publicly disclose the non-profit’s research and development, including details on GPT-4, GPT-4T, and GPT-4o’s architecture, hardware, training method, and training computation.” This excluded the public “from open usage of GPT-4 and related technology to advance Defendants and Microsoft’s own commercial interests,” Musk alleged.

Now Musk has revived his suit against OpenAI, asking the court to award maximum damages for OpenAI’s alleged fraud, contract breaches, false advertising, acts viewed as unfair to competition, and other violations.

He has also asked the court to determine a very technical question: whether OpenAI’s most recent models should be considered AGI and therefore Microsoft’s license voided. That’s the only way to ensure that a private corporation isn’t controlling OpenAI’s AGI models, which Musk repeatedly conditioned his financial contributions upon preventing.

“Musk contributed considerable money and resources to launch and sustain OpenAI, Inc., which was done on the condition that the endeavor would be and remain a non-profit devoted to openly sharing its technology with the public and avoid concentrating its power in the hands of the few,” Musk’s complaint said. “Defendants knowingly and repeatedly accepted Musk’s contributions in order to develop AGI, with no intention of honoring those conditions once AGI was in reach. Case in point: GPT-4, GPT-4T, and GPT-4o are all closed source and shrouded in secrecy, while Defendants actively work to transform the non-profit into a thoroughly commercial business.”

Musk wants Microsoft’s GPT-4 license voided

Musk also asked the court to null and void OpenAI’s exclusive license to Microsoft, or else determine “whether GPT-4, GPT-4T, GPT-4o, and other OpenAI next generation large language models constitute AGI and are thus excluded from Microsoft’s license.”

It’s clear that Musk considers these models to be AGI, and he’s alleged that Altman’s current control of OpenAI’s Board—after firing dissidents in 2023 whom Musk claimed tried to get Altman ousted for prioritizing profits over AI safety—gives Altman the power to obscure when OpenAI’s models constitute AGI.

Elon Musk sues OpenAI, Sam Altman for making a “fool” out of him Read More »

now-that-decent-arm-powered-pcs-exist,-qualcomm’s-ceo-wants-to-make-them-cheaper

Now that decent Arm-powered PCs exist, Qualcomm’s CEO wants to make them cheaper

an arm and a leg —

The first wave of Snapdragon X Plus and Elite systems are mostly $1,000 and up.

Microsoft's Arm-powered Surface Laptop 7. We're still waiting for Arm chips to make their way into cheaper PCs.

Enlarge / Microsoft’s Arm-powered Surface Laptop 7. We’re still waiting for Arm chips to make their way into cheaper PCs.

Andrew Cunningham

For the first time in the decade-plus that Microsoft has been trying to make Arm-powered Windows PCs happen, we’ve finally got some pretty good ones. The latest Surface Pro and Surface Laptop (and the other Copilot+ PCs) benefit from extensive work done to Windows 11’s x86 translation layer, a wider selection of native apps, and most importantly, Snapdragon X Pro and X Elite chips from Qualcomm that are as good as or better than Intel’s or AMD’s current offerings.

The main problem with these computers is that they’re all on the expensive side. The cheapest Snapdragon X PC right now is probably this $899 developer kit mini-desktop; the cheapest laptops start around the same $1,000 price as the entry-level MacBook Air.

That’s a problem Qualcomm hopes to correct next year. Qualcomm CEO Christiano Amon said on the company’s Q3 earnings call (as recorded by The Verge) that the company was hoping to bring Arm PC prices down to $700 at some point in 2025, noting that these cheaper PCs wouldn’t compromise the performance of the Snapdragon X series’ built-in neural processing unit (NPU).

That Amon singled out the NPU is interesting because it leaves the door open to further reductions in CPU and GPU performance to make cheaper products that can hit those lower prices. The Snapdragon X Plus series keeps the exact same NPU as the X Elite, for example, but comes with fewer CPU and GPU cores that are clocked lower than the Snapdragon X Elite chips.

Qualcomm may want to keep NPU performance the same because Microsoft has a minimum NPU performance requirement of 40 trillion operations per second (TOPS) to qualify for its Copilot+ PC label and associated features in Windows 11. Other requirements include 16GB of memory and 256GB of storage, but Microsoft specifically hasn’t made specific CPU or GPU performance recommendations for the Copilot+ program beyond the basic ones necessary for running Windows 11 in the first place. Copilot+ PCs come with additional AI-powered features that take advantage of local processing power rather than sending requests to the cloud, though as of this writing, there aren’t many of these features, and one of the biggest ones (Recall) has been delayed indefinitely because of privacy and security concerns.

Lofty goals for Arm PCs

Both Arm and Qualcomm have made lofty claims about their goals in the PC market. Arm CEO Rene Haas says Arm chips could account for more than half of all Windows PC shipments in the next five years, and Amon has said that PC OEMs expect as much as 60 percent of their systems to ship with Arm chips in the next three years.

These claims seem overly optimistic; Intel and AMD aren’t going anywhere and aren’t standing still, and despite improvements to Windows-on-Arm, the PC ecosystem still has decades invested in x86 chips. But if either company is ever going to get anywhere close to those numbers, fielding decent systems at more mass-market prices will be key to achieving that kind of volume.

Hopefully, the cheaper Snapdragon systems will be available both as regular laptops and as mini desktops, like Qualcomm’s dev kit desktop. To succeed, the Arm Windows ecosystem will need to mirror what is available in both the x86 PC ecosystem and Apple’s Mac lineup to capture as many buyers as possible.

And the more Arm PCs there are out there, the more incentive developers will have to continue fixing Windows-on-Arm’s last lingering compatibility problems. Third-party drivers for things like printers, mice, audio preamps and mixers, and other accessories are the biggest issue right now since there’s no way to translate the x86 versions. The only way to support this hardware will be with more Arm-native software, and the only way to get more Arm-native software is to make it worth developers’ time to write it.

Now that decent Arm-powered PCs exist, Qualcomm’s CEO wants to make them cheaper Read More »

microsoft-says-8.5m-systems-hit-by-crowdstrike-bsod,-releases-usb-recovery-tool

Microsoft says 8.5M systems hit by CrowdStrike BSOD, releases USB recovery tool

still striking —

When reboots don’t work, bootable USB sticks may help ease fixes for some PCs.

A bad update to CrowdStrike's Falcon security software crashed millions of Windows PCs last week.

Enlarge / A bad update to CrowdStrike’s Falcon security software crashed millions of Windows PCs last week.

CrowdStrike

By Monday morning, many of the major disruptions from the flawed CrowdStrike security update late last week had cleared up. Flight delays and cancellations were no longer front-page news, and multiple Starbucks locations near me are taking orders through the app once again.

But the cleanup effort continues. Microsoft estimates that around 8.5 million Windows systems were affected by the issue, which involved a buggy .sys file that was automatically pushed to Windows PCs running the CrowdStrike Falcon security software. Once downloaded, that update caused Windows systems to display the dreaded Blue Screen of Death and enter a boot loop.

“While software updates may occasionally cause disturbances, significant incidents like the CrowdStrike event are infrequent,” wrote Microsoft VP of Enterprise and OS Security David Weston in a blog post. “We currently estimate that CrowdStrike’s update affected 8.5 million Windows devices, or less than one percent of all Windows machines. While the percentage was small, the broad economic and societal impacts reflect the use of CrowdStrike by enterprises that run many critical services.”

The “easy” fix documented by both CrowdStrike (whose direct fault this is) and Microsoft (which has taken a lot of the blame for it in mainstream reporting, partly because of an unrelated July 18 Azure outage that had hit shortly before) was to reboot affected systems over and over again in the hopes that they would pull down a new update file before they could crash. For systems where that method hasn’t worked—and Microsoft has recommended customers reboot as many as 15 times to give computers a chance to download the update—the recommended fix has been to delete the bad .sys file manually. This allows the system to boot and download a fixed file, resolving the crashes without leaving machines unprotected.

To help ease the pain of that process, Microsoft over the weekend released a recovery tool that helps to automate the repair process on some affected systems; it involves creating bootable media using a 1GB-to-32GB USB drive, booting from that USB drive, and using one of two options to repair your system. For devices that can’t boot via USB—sometimes this is disabled on corporate systems for security reasons—Microsoft also documents a PXE boot option for booting over a network.

WinPE to the rescue

The bootable drive uses the WinPE environment, a lightweight, command-line-driven version of Windows typically used by IT administrators to apply Windows images and perform recovery and maintenance operations.

One repair option boots directly into WinPE and deletes the affected file without requiring administrator privileges. But if your drive is protected by BitLocker or another disk-encryption product, you’ll need to manually enter your recovery key so that WinPE can read data on the drive and delete the file. According to Microsoft’s documentation, the tool should automatically delete the bad CrowdStrike update without user intervention once it can read the disk.

If you are using BitLocker, the second recovery option attempts to boot Windows into Safe Mode using the recovery key stored in your device’s TPM to automatically unlock the disk, as happens during a normal boot. Safe Mode loads the minimum set of drivers that Windows needs to boot, allowing you to locate and delete the CrowdStrike driver file without running into the BSOD issue. The file is located at Windows/System32/Drivers/CrowdStrike/C-00000291*.sys on affected systems, or users can run “repair.cmd” from the USB drive to automate the fix.

For its part, CrowdStrike has set up a “remediation and guidance hub” for affected customers. As of Sunday, the company said it was “test[ing] a new technique to accelerate impacted system remediation,” but it hasn’t shared more details as of this writing. The other fixes outlined on that page include rebooting multiple times, manually deleting the affected file, or using Microsoft’s boot media to help automate the fix.

The CrowdStrike outage didn’t just delay flights and make it harder to order coffee. It also affected doctor’s offices and hospitals, 911 emergency services, hotel check-in and key card systems, and work-issued computers that were online and grabbing updates when the flawed update was sent out. In addition to providing fixes for client PCs and virtual machines hosted in its Azure cloud, Microsoft says it has been working with Google Cloud Platform, Amazon Web Services, and “other cloud providers and stakeholders” to provide fixes to Windows VMs running in its competitors’ clouds.

Microsoft says 8.5M systems hit by CrowdStrike BSOD, releases USB recovery tool Read More »

crowdstrike-fixes-start-at-“reboot-up-to-15-times”-and-get-more-complex-from-there

CrowdStrike fixes start at “reboot up to 15 times” and get more complex from there

turning it off and back on again, and again, and again —

Admins can also restore backups or manually delete CrowdStrike’s buggy driver.

CrowdStrike fixes start at “reboot up to 15 times” and get more complex from there

Airlines, payment processors, 911 call centers, TV networks, and other businesses have been scrambling this morning after a buggy update to CrowdStrike’s Falcon security software caused Windows-based systems to crash with a dreaded blue screen of death (BSOD) error message.

We’re updating our story about the outage with new details as we have them. Microsoft and CrowdStrike both say that “the affected update has been pulled,” so what’s most important for IT admins in the short term is getting their systems back up and running again. According to guidance from Microsoft, fixes range from annoying but easy to incredibly time-consuming and complex, depending on the number of systems you have to fix and the way your systems are configured.

Microsoft’s Azure status page outlines several fixes. The first and easiest is simply to try to reboot affected machines over and over, which gives affected machines multiple chances to try to grab CrowdStrike’s non-broken update before the bad driver can cause the BSOD. Microsoft says that some of its customers have had to reboot their systems as many as 15 times to pull down the update.

Early guidance for fixing the CrowdStrike bug is simply to reboot systems over and over again so that they can try to grab a non-broken update.

Enlarge / Early guidance for fixing the CrowdStrike bug is simply to reboot systems over and over again so that they can try to grab a non-broken update.

Microsoft

If rebooting doesn’t work

If rebooting multiple times isn’t fixing your problem, Microsoft recommends restoring your systems using a backup from before 4: 09 UTC on July 18 (just after midnight on Friday, Eastern time), when CrowdStrike began pushing out the buggy update. Crowdstrike says a reverted version of the file was deployed at 5: 27 UTC.

If these simpler fixes don’t work, you may need to boot your machines into Safe Mode so you can manually delete the file that’s causing the BSOD errors. For virtual machines, Microsoft recommends attaching the virtual disk to a known-working repair VM so the file can be deleted, then reattaching the virtual disk to its original VM.

The file in question is a CrowdStrike driver located at Windows/System32/Drivers/CrowdStrike/C-00000291*.sys. Once it’s gone, the machine should boot normally and grab a non-broken version of the driver.

Deleting that file on each and every one of your affected systems individually is time-consuming enough, but it’s even more time-consuming for customers using Microsoft’s BitLocker drive encryption to protect data at rest. Before you can delete the file on those systems, you’ll need the recovery key that unlocks those encrypted disks and makes them readable (normally, this process is invisible, because the system can just read the key stored in a physical or virtual TPM module).

This can cause problems for admins who aren’t using key management to store their recovery keys, since (by design!) you can’t access a drive without its recovery key. If you don’t have that key, Cryptography and infrastructure engineer Tony Arcieri on Mastodon compared this to a “self-inflicted ransomware attack,” where an attacker encrypts the disks on your systems and withholds the key until they get paid.

And even if you do have a recovery key, your key management server might also be affected by the CrowdStrike bug.

We’ll continue to track recommendations from Microsoft and CrowdStrike about fixes as each company’s respective status pages are updated.

“We understand the gravity of the situation and are deeply sorry for the inconvenience and disruption,” wrote CrowdStrike CEO George Kurtz on X, formerly Twitter. “We are working with all impacted customers to ensure that systems are back up and they can deliver the services their customers are counting on.”

CrowdStrike fixes start at “reboot up to 15 times” and get more complex from there Read More »

major-outages-at-crowdstrike,-microsoft-leave-the-world-with-bsods-and-confusion

Major outages at CrowdStrike, Microsoft leave the world with BSODs and confusion

Y2K24 —

Nobody’s sure who’s at fault for each outage: Microsoft, CrowdStrike, or both.

A passenger sits on the floor as long queues form at the check-in counters at Ninoy Aquino International Airport, on July 19, 2024 in Manila, Philippines.

Enlarge / A passenger sits on the floor as long queues form at the check-in counters at Ninoy Aquino International Airport, on July 19, 2024 in Manila, Philippines.

Ezra Acayan/Getty Images

Millions of people outside the IT industry are learning what CrowdStrike is today, and that’s a real bad thing. Meanwhile, Microsoft is also catching blame for global network outages, and between the two, it’s unclear as of Friday morning just who caused what.

After cybersecurity firm CrowdStrike shipped an update to its Falcon Sensor software that protects mission-critical systems, blue screens of death (BSODs) started taking down Windows-based systems. The problems started in Australia and followed the dateline from there.

TV networks, 911 call centers, and even the Paris Olympics were affected. Banks and financial systems in India, South Africa, Thailand, and other countries fell as computers suddenly crashed. Some individual workers discovered that their work-issued laptops were booting to blue screens on Friday morning. The outages took down not only Starbucks mobile ordering, but also a single motel in Laramie, Wyoming.

Airlines, never the most agile of networks, were particularly hard-hit, with American Airlines, United, Delta, and Frontier among the US airlines overwhelmed Friday morning.

CrowdStrike CEO “deeply sorry”

Fixes suggested by both CrowdStrike and Microsoft for endlessly crashing Windows systems range from “reboot it up to 15 times” to individual driver deletions within detached virtual OS disks. The presence of BitLocker drive encryption on affected devices further complicates matters.

CrowdStrike CEO George Kurtz posted on X (formerly Twitter) at 5: 45 am Eastern time that the firm was working on “a defect found in a single content update for Windows hosts,” with Mac and Linux hosts unaffected. “This is not a security incident or cyberattack. The issue has been identified, isolated and a fix has been deployed,” Kurtz wrote. Kurtz told NBC’s Today Show Friday morning that CrowdStrike is “deeply sorry for the impact that we’ve caused to customers.”

As noted on Mastodon by LittleAlex, Kurtz was the Chief Technology Officer of security firm McAfee when, in April 2010, that firm sent an update that deleted a crucial Windows XP file that caused widespread outages and required system-by-system file repair.

The costs of such an outage will take some time to be known, and will be hard to measure. Cloud cost analyst CloudZero estimated mid-morning Friday that the CrowdStrike incident had already cost $24 billion, based on a previous estimate.

Multiple outages, unclear blame

Microsoft services were, in a seemingly terrible coincidence, also down overnight Thursday into Friday. Multiple Azure services went down Thursday evening, with the cause cited as “a backend cluster management workflow [that] deployed a configuration change causing backend access to be blocked between a subset of Azure Storage clusters and compute resources in the Central US region.”

A spokesperson for Microsoft told Ars in a statement Friday that the CrowdStrike update was not related to its July 18 Azure outage. “That issue has fully recovered,” the statement read.

News reporting on these outages has so far blamed either Microsoft, CrowdStrike, or an unclear mixture of the two as the responsible party for various outages. It may be unavoidable, given that the outages are all happening on one platform, Windows. Microsoft itself issued an “Awareness” regarding the CrowdStrike BSOD issue on virtual machines running Windows. The firm was frequently updating it Friday, with a fix that may or may not surprise IT veterans.

“We’ve received feedback from customers that several reboots (as many as 15 have been reported) may be required, but overall feedback is that reboots are an effective troubleshooting step at this stage,” Microsoft wrote in the bulletin. Alternately, Microsoft recommend customers that have a backup from “before 19: 00 UTC on the 18th of July” restore it, or attach the OS disk to a repair VM to then delete the file (Windows/System32/Drivers/CrowdStrike/C00000291*.sys) at the heart of the boot loop.

Security consultant Troy Hunt was quoted as describing the dual failures as “the largest IT outage in history,” saying, “basically what we were all worried about with Y2K, except it’s actually happened this time.”

United Airlines told Ars that it was “resuming some flights, but expect schedule disruptions to continue throughout Friday,” and had issued waivers for customers to change travel plans. American Airlines posted early Friday that it had re-established its operations by 5 am Eastern, but expected delays and cancellations throughout Friday.

Ars has reached out to CrowdStrike for comment and will update this post with response.

This is a developing story and this post will be updated as new information is available.

Major outages at CrowdStrike, Microsoft leave the world with BSODs and confusion Read More »

google’s-$500m-effort-to-wreck-microsoft-eu-cloud-deal-failed,-report-says

Google’s $500M effort to wreck Microsoft EU cloud deal failed, report says

Google’s $500M effort to wreck Microsoft EU cloud deal failed, report says

Google tried to derail a Microsoft antitrust settlement over anticompetitive software licensing in the European Union by offering a $500 million alternative deal to the group of cloud providers behind the EU complaint, Bloomberg reported.

According to Bloomberg, Google’s offer to the Cloud Infrastructure Services Providers in Europe (CISPE) required that the group maintain its EU antitrust complaint. It came “just days” before CISPE settled with Microsoft, and it was apparently not compelling enough to stop CISPE from inking a deal with the software giant that TechCrunch noted forced CISPE to accept several compromises.

Bloomberg uncovered Google’s attempted counteroffer after reviewing confidential documents and speaking to “people familiar with the matter.” Apparently, Google sought to sway CISPE with a package worth nearly $500 million for more than five years of software licenses and about $15 million in cash.

But CISPE did not take the bait, announcing last week that an agreement was reached with Microsoft, seemingly frustrating Google.

CISPE initially raised its complaint in 2022, alleging that Microsoft was “irreparably damaging the European cloud ecosystem and depriving European customers of choice in their cloud deployments” by spiking costs to run Microsoft’s software on rival cloud services. In February, CISPE said that “any remedies and resolution must apply across the sector and to be accessible to all cloud customers in Europe.” They also promised that “any agreements will be made public.”

But the settlement reached last week excluded major rivals, including Amazon, which is a CISPE member, and Google, which is not. And despite CISPE’s promise, the terms of the deal were not published, apart from a CISPE blog roughly outlining central features that it claimed resolved the group’s concerns over Microsoft’s allegedly anticompetitive behaviors.

What is clear is that CISPE agreed to drop their complaint by taking the deal, but no one knows exactly how much Microsoft paid in a “lump sum” to cover CISPE legal fees for three years, TechCrunch noted. However, “two people with direct knowledge of the matter” told Reuters that Microsoft offered about $22 million.

Google has been trying to catch up with Microsoft and Amazon in the cloud market and has recently begun gaining ground. Last year, Google’s cloud operation broke even for the first time, and the company earned a surprising $900 million in profits in the first quarter of 2024, which bested analysts’ projections by more than $200 million, Bloomberg reported. For Google, the global cloud market has become a key growth area, Bloomberg noted, as potential growth opportunities in search advertising slow. Seemingly increasing regulatory pressure on Microsoft while taking a chunk of its business in the EU was supposed to be one of Google’s next big moves.

A CISPE spokesperson, Ben Maynard, told Ars that its “members were presented with alternative options to accepting the Microsoft deal,” while not disclosing the terms of the other options. “However, the members voted by a significant majority to accept the Microsoft offer, which, in their view, presented the best opportunity for the European cloud sector,” Maynard told Ars.

Neither Microsoft nor Google has commented directly on the reported counteroffer. A Google spokesperson told Bloomberg that Google “has long supported the principles of fair software licensing and that the firm was having discussions about joining CISPE, to fight anticompetitive licensing practices.” A person familiar with the matter told Ars that Google did not necessarily make the counteroffer contingent on dropping the EU complaint, but had long been exploring joining CISPE and would only do so if CISPE upheld its mission to defend fair licensing deals. Microsoft reiterated a past statement from its president, Brad Smith, confirming that Microsoft was “pleased” to resolve CISPE’s antitrust complaint.

For CISPE, the resolution may not have been perfect, but it “will enable European cloud providers to offer Microsoft applications and services on their local cloud infrastructures, meeting the demand for sovereign cloud solutions.” In 2022, CISPE Secretary-General Francisco Mingorance told Ars that although CISPE had been clear that it intended to force Microsoft to make changes allowing all cloud rivals to compete, “a key reason behind filing the complaint was to support” two smaller cloud service providers, Aruba and OVH.

Google’s $500M effort to wreck Microsoft EU cloud deal failed, report says Read More »

microsoft-cto-kevin-scott-thinks-llm-“scaling-laws”-will-hold-despite-criticism

Microsoft CTO Kevin Scott thinks LLM “scaling laws” will hold despite criticism

As the word turns —

Will LLMs keep improving if we throw more compute at them? OpenAI dealmaker thinks so.

Kevin Scott, CTO and EVP of AI at Microsoft speaks onstage during Vox Media's 2023 Code Conference at The Ritz-Carlton, Laguna Niguel on September 27, 2023 in Dana Point, California.

Enlarge / Kevin Scott, CTO and EVP of AI at Microsoft speaks onstage during Vox Media’s 2023 Code Conference at The Ritz-Carlton, Laguna Niguel on September 27, 2023 in Dana Point, California.

During an interview with Sequoia Capital’s Training Data podcast published last Tuesday, Microsoft CTO Kevin Scott doubled down on his belief that so-called large language model (LLM) “scaling laws” will continue to drive AI progress, despite some skepticism in the field that progress has leveled out. Scott played a key role in forging a $13 billion technology-sharing deal between Microsoft and OpenAI.

“Despite what other people think, we’re not at diminishing marginal returns on scale-up,” Scott said. “And I try to help people understand there is an exponential here, and the unfortunate thing is you only get to sample it every couple of years because it just takes a while to build supercomputers and then train models on top of them.”

LLM scaling laws refer to patterns explored by OpenAI researchers in 2020 showing that the performance of language models tends to improve predictably as the models get larger (more parameters), are trained on more data, and have access to more computational power (compute). The laws suggest that simply scaling up model size and training data can lead to significant improvements in AI capabilities without necessarily requiring fundamental algorithmic breakthroughs.

Since then, other researchers have challenged the idea of persisting scaling laws over time, but the concept is still a cornerstone of OpenAI’s AI development philosophy.

You can see Scott’s comments in the video below beginning around 46: 05:

Microsoft CTO Kevin Scott on how far scaling laws will extend

Scott’s optimism contrasts with a narrative among some critics in the AI community that progress in LLMs has plateaued around GPT-4 class models. The perception has been fueled by largely informal observations—and some benchmark results—about recent models like Google’s Gemini 1.5 Pro, Anthropic’s Claude Opus, and even OpenAI’s GPT-4o, which some argue haven’t shown the dramatic leaps in capability seen in earlier generations, and that LLM development may be approaching diminishing returns.

“We all know that GPT-3 was vastly better than GPT-2. And we all know that GPT-4 (released thirteen months ago) was vastly better than GPT-3,” wrote AI critic Gary Marcus in April. “But what has happened since?”

The perception of plateau

Scott’s stance suggests that tech giants like Microsoft still feel justified in investing heavily in larger AI models, betting on continued breakthroughs rather than hitting a capability plateau. Given Microsoft’s investment in OpenAI and strong marketing of its own Microsoft Copilot AI features, the company has a strong interest in maintaining the perception of continued progress, even if the tech stalls.

Frequent AI critic Ed Zitron recently wrote in a post on his blog that one defense of continued investment into generative AI is that “OpenAI has something we don’t know about. A big, sexy, secret technology that will eternally break the bones of every hater,” he wrote. “Yet, I have a counterpoint: no it doesn’t.”

Some perceptions of slowing progress in LLM capabilities and benchmarking may be due to the rapid onset of AI in the public eye when, in fact, LLMs have been developing for years prior. OpenAI continued to develop LLMs during a roughly three-year gap between the release of GPT-3 in 2020 and GPT-4 in 2023. Many people likely perceived a rapid jump in capability with GPT-4’s launch in 2023 because they had only become recently aware of GPT-3-class models with the launch of ChatGPT in late November 2022, which used GPT-3.5.

In the podcast interview, the Microsoft CTO pushed back against the idea that AI progress has stalled, but he acknowledged the challenge of infrequent data points in this field, as new models often take years to develop. Despite this, Scott expressed confidence that future iterations will show improvements, particularly in areas where current models struggle.

“The next sample is coming, and I can’t tell you when, and I can’t predict exactly how good it’s going to be, but it will almost certainly be better at the things that are brittle right now, where you’re like, oh my god, this is a little too expensive, or a little too fragile, for me to use,” Scott said in the interview. “All of that gets better. It’ll get cheaper, and things will become less fragile. And then more complicated things will become possible. That is the story of each generation of these models as we’ve scaled up.”

Microsoft CTO Kevin Scott thinks LLM “scaling laws” will hold despite criticism Read More »

microsoft-asks-many-game-pass-subscribers-to-pay-more-for-less

Microsoft asks many Game Pass subscribers to pay more for less

Raking it in —

Launch day access to first-party titles now restricted to $19.99/month “Ultimate” tier.

Artist's conception of Microsoft executives after today's Game Pass pricing announcements.

Enlarge / Artist’s conception of Microsoft executives after today’s Game Pass pricing announcements.

Getty Images

For years now, Microsoft’s Xbox Game Pass has set itself apart by offering subscribers launch-day access to new first-party titles in addition to a large legacy library of older games. That important “day one” perk is now set to go away for all but the highest tier of Game Pass’ console subscribers, even as Microsoft asks for more money for Game Pass across the board.

Let’s start with the price increases for existing Game Pass tiers, which are relatively straightforward:

  • “Game Pass Ultimate” is going from $16.99 to $19.99 per month.
  • “Game Pass for PC” is going from $9.99 to $11.99 per month.
  • “Game Pass Core” (previously known as Xbox Live Gold) is going from $59.99 to $74.99 for annual subscriptions (and remains at $9.99 for monthly subscriptions).

Things get a bit more complicated for the $10.99/month “Xbox Game Pass for Console” tier. Microsoft announced that it will no longer accept new subscriptions for that tier after today, though current subscribers will be able to keep it (for now) if they auto-renew their subscriptions.

In its place, Microsoft will “in the coming months” roll out a new $14.99 “Xbox Game Pass Standard” tier. That new option will combine the usual access to “hundreds of high-quality games on console” with the “online console multiplayer” features that previously required a separate Xbox Game Pass Core subscription (“Core” will still be available separately and include access to a smaller “25+ game” library).

Quick and dirty chart by me to display the new Xbox Game Pass structure (subject to correction).

I hope this helps. pic.twitter.com/Qj6CX7i4kG

— Klobrille (@klobrille) July 10, 2024

But while the current Xbox Game Pass Console option promises access to Xbox Game Studios games “the same day they launch,” those “Day One releases” are conspicuously absent as a perk for the replacement Xbox Game Pass Standard subscription.

“Some games available with Xbox Game Pass Ultimate on day one will not be immediately available with Xbox Game Pass Standard and may be added to the library at a future date,” Microsoft writes in an FAQ explaining the changes.

Players who want guaranteed access to all those “Day One” releases will now have to subscribe to the $19.99/month Game Pass Ultimate. That’s an 81 percent increase from the $10.99/month that console players currently pay for similar “Day One” access on the disappearing Game Pass Console tier.

To be fair, that extra subscription money does come with some added benefits. Upgrading from Game Pass Console/Standard to Game Pass Ultimate lets you use Microsoft’s cloud gaming service, access downloadable PC games and the EA Play library, and get additional “free perks every month.” But it’s the launch day access to Microsoft’s system-selling first-party titles that really sets the Ultimate tier apart now, and which will likely necessitate a costly upgrade for many Xbox Game Pass subscribers.

More problems, more money

When Game Pass first launched in 2017, it was focused on legacy games, not day one launch titles.

Enlarge / When Game Pass first launched in 2017, it was focused on legacy games, not day one launch titles.

While Xbox Game Pass launched in 2017, launch-day access to all of Microsoft’s new first-party games wasn’t promised to subscribers until the beginning of 2018. Since then, loyal Game Pass subscribers have been able to play dozens of new first-party titles at launch, from major franchises like Halo, Forza, and Gears of War to indie darlings like Hi-Fi Rush, Sea of Thieves, and Ori and the Will of the Wisps and much more.

Sure, access to hundreds of older games was nice. But the promise of brand-new major first-party titles was instrumental in driving Xbox Game Pass to 34 million subscribers as of February. And Sony found itself unwilling to match that “day one” perk for its similar PlayStation Plus service, which only includes a handful of older PlayStation Studios titles.

In a 2022 interview with GamesIndustry.biz, PlayStation CEO Jim Ryan said throwing new first-party games on their subscription service would break a “virtuous cycle” in which new full game purchases (at a price of up to $70) help fund the next round of game development. “The level of investment that we need to make in our studios would not be possible, and we think the knock-on effect on the quality of the games that we make would not be something that gamers want.”

And Microsoft may come to a similar conclusion. Including first-party titles with cheaper, console-focused Game Pass subscriptions probably seemed like a good idea when Microsoft was still trying to attract subscribers to the service. But Game Pass subscriber growth is starting to slow as the market of potential customers has become saturated. Microsoft now needs to extract more value from those subscribers to justify Game Pass cannibalizing direct sales of its own first-party games.

Call of Duty: Black Ops 6 to a Game Pass subscription.” height=”360″ src=”https://cdn.arstechnica.net/wp-content/uploads/2024/07/codblops6-640×360.jpg” width=”640″>

Enlarge / Microsoft paid a lot of money to add the value of Call of Duty: Black Ops 6 to a Game Pass subscription.

Activision

And let’s not forget Activision, which Microsoft recently spent a whopping $69 billion to acquire after lengthy legal and regulatory battles. Recouping that cost, while also offering Game Pass subscribers launch day access to massive sellers like Call of Duty, likely forced Microsoft to maximize Game Pass’ revenue-generating opportunities.

“Let’s put it this way: If 7 million Xbox Game Pass subscribers were planning to buy ‘Call of Duty’ for $70 but now have no reason to (as it’s part of their subscription), that leaves almost half a billion dollars of revenue on the table,” MIDia analyst Rhys Elliott told The Daily Upside by way of illustrating the significant numbers involved.

For players who enjoy a wide variety of games and would likely purchase all or most of Microsoft’s first-party titles at launch anyway, Xbox Game Pass Ultimate it still probably a good deal at its increased price. But players who subscribed to a relatively cheap console Game Pass option years ago may want to reevaluate if maintaining that launch day access is now worth $240 a year.

Microsoft asks many Game Pass subscribers to pay more for less Read More »

the-president-ordered-a-board-to-probe-a-massive-russian-cyberattack-it-never-did.

The president ordered a board to probe a massive Russian cyberattack. It never did.

In this photo illustration, a Microsoft logo seen displayed on a smartphone with a Cyber Security illustration image in the background.

This story was originally published by ProPublica.

Investigating how the world’s largest software provider handles the security of its own ubiquitous products.

After Russian intelligence launched one of the most devastating cyber espionage attacks in history against US government agencies, the Biden administration set up a new board and tasked it to figure out what happened—and tell the public.

State hackers had infiltrated SolarWinds, an American software company that serves the US government and thousands of American companies. The intruders used malicious code and a flaw in a Microsoft product to steal intelligence from the National Nuclear Security Administration, National Institutes of Health, and the Treasury Department in what Microsoft President Brad Smith called “the largest and most sophisticated attack the world has ever seen.”

The president issued an executive order establishing the Cyber Safety Review Board in May 2021 and ordered it to start work by reviewing the SolarWinds attack.

But for reasons that experts say remain unclear, that never happened.

Nor did the board probe SolarWinds for its second report.

For its third, the board investigated a separate 2023 attack, in which Chinese state hackers exploited an array of Microsoft security shortcomings to access the email inboxes of top federal officials.

A full, public accounting of what happened in the Solar Winds case would have been devastating to Microsoft. ProPublica recently revealed that Microsoft had long known about—but refused to address—a flaw used in the hack. The tech company’s failure to act reflected a corporate culture that prioritized profit over security and left the US government vulnerable, a whistleblower said.

The board was created to help address the serious threat posed to the US economy and national security by sophisticated hackers who consistently penetrate government and corporate systems, making off with reams of sensitive intelligence, corporate secrets, or personal data.

For decades, the cybersecurity community has called for a cyber equivalent of the National Transportation Safety Board, the independent agency required by law to investigate and issue public reports on the causes and lessons learned from every major aviation accident, among other incidents. The NTSB is funded by Congress and staffed by experts who work outside of the industry and other government agencies. Its public hearings and reports spur industry change and action by regulators like the Federal Aviation Administration.

So far, the Cyber Safety Review Board has charted a different path.

The board is not independent—it’s housed in the Department of Homeland Security. Rob Silvers, the board chair, is a Homeland Security undersecretary. Its vice chair is a top security executive at Google. The board does not have full-time staff, subpoena power or dedicated funding.

Silvers told ProPublica that DHS decided the board didn’t need to do its own review of SolarWinds as directed by the White House because the attack had already been “closely studied” by the public and private sectors.

“We want to focus the board on reviews where there is a lot of insight left to be gleaned, a lot of lessons learned that can be drawn out through investigation,” he said.

As a result, there has been no public examination by the government of the unaddressed security issue at Microsoft that was exploited by the Russian hackers. None of the SolarWinds reports identified or interviewed the whistleblower who exposed problems inside Microsoft.

By declining to review SolarWinds, the board failed to discover the central role that Microsoft’s weak security culture played in the attack and to spur changes that could have mitigated or prevented the 2023 Chinese hack, cybersecurity experts and elected officials told ProPublica.

“It’s possible the most recent hack could have been prevented by real oversight,” Sen. Ron Wyden, a Democratic member of the Senate Select Committee on Intelligence, said in a statement. Wyden has called for the board to review SolarWinds and for the government to improve its cybersecurity defenses.

In a statement, a spokesperson for DHS rejected the idea that a SolarWinds review could have exposed Microsoft’s failings in time to stop or mitigate the Chinese state-based attack last summer. “The two incidents were quite different in that regard, and we do not believe a review of SolarWinds would have necessarily uncovered the gaps identified in the Board’s latest report,” they said.

The board’s other members declined to comment, referred inquiries to DHS or did not respond to ProPublica.

In past statements, Microsoft did not dispute the whistleblower’s account but emphasized its commitment to security. “Protecting customers is always our highest priority,” a spokesperson previously told ProPublica. “Our security response team takes all security issues seriously and gives every case due diligence with a thorough manual assessment, as well as cross-confirming with engineering and security partners.”

The board’s failure to probe SolarWinds also underscores a question critics including Wyden have raised about the board since its inception: whether a board with federal officials making up its majority can hold government agencies responsible for their role in failing to prevent cyberattacks.

“I remain deeply concerned that a key reason why the Board never looked at SolarWinds—as the President directed it to do so—was because it would have required the board to examine and document serious negligence by the US government,” Wyden said. Among his concerns is a government cyberdefense system that failed to detect the SolarWinds attack.

Silvers said while the board did not investigate SolarWinds, it has been given a pass by the independent Government Accountability Office, which said in an April study examining the implementation of the executive order that the board had fulfilled its mandate to conduct the review.

The GAO’s determination puzzled cybersecurity experts. “Rob Silvers has been declaring by fiat for a long time that the CSRB did its job regarding SolarWinds, but simply declaring something to be so doesn’t make it true,” said Tarah Wheeler, the CEO of Red Queen Dynamics, a cybersecurity firm, who co-authored a Harvard Kennedy School report outlining how a “cyber NTSB” should operate.

Silvers said the board’s first and second reports, while not probing SolarWinds, resulted in important government changes, such as new Federal Communications Commission rules related to cell phones.

“The tangible impacts of the board’s work to date speak for itself and in bearing out the wisdom of the choices of what the board has reviewed,” he said.

The president ordered a board to probe a massive Russian cyberattack. It never did. Read More »

notepad’s-spellcheck-and-autocorrect-are-rolling-out-to-everybody-after-41-years

Notepad’s spellcheck and autocorrect are rolling out to everybody after 41 years

notrpad spelchexk —

It’s still bare-bones by most standards, but Notepad has evolved a lot recently.

  • Testing spellcheck in the latest version of Windows Notepad.

  • Right-clicking and expanding the Spelling menu also presents more options.

    Andrew Cunningham

  • Like other recent Notepad additions, spellcheck and autocorrect can be tweaked or disabled entirely in the settings.

    Andrew Cunningham

In March, Microsoft started testing an update to the venerable Notepad app that added spellcheck and autocorrect to the app’s limited but slowly growing set of capabilities. The update that adds these features to Notepad is now rolling out to all Windows 11 users via the Microsoft Store, as reported by The Verge.

The spellcheck feature underlines words in red when they’re misspelled, and users can either left-click the words to see a list of suggestions or right-click words and see suggestions under a separate “spelling” menu item. Autocorrect works automatically to fix minor and obvious misspellings (typing “misspellign” instead of “misspelling,” for example), and changes can be reverted manually or by using the Undo command.

Either feature can be disabled from within Notepad’s settings. The spellchecker can also be switched on and off for a few different individual file extensions in case you want to see spelling suggestions for .txt files but not for .md or .lic files. The Verge also reports that spellchecking is turned off by default for log files or “other file types associated with coding.” Neither feature worked when I opened a batch file in Notepad to edit it, for example.

Microsoft often rolls out new app updates gradually, so you may or may not be seeing the new features yet. I can currently see the spellcheck and autocorrect features in Notepad version 11.2405.13.0 running on a fully updated Windows 11 23H2 PC, but your mileage may vary.

Notepad has received several updates over the course of the Windows 11 era, starting with dark mode support and other theme options. Eventually, it also added a tabbed interface that supported automatically reopening files when relaunching the app. These kinds of additions count as “major” for Notepad, which for years had only received relatively minor under-the-hood updates (when it was being updated at all).

The Notepad improvements come as Microsoft prepares to stop shipping WordPad with Windows 11. WordPad was previously Windows’ preinstalled basic word processor, but it has seen few (if any) significant updates since Windows 7 was released in 2009. WordPad is still available in Windows 11 22H2 and 23H2, but is no longer included in current versions of the upcoming Windows 11 24H2 update. After WordPad is gone, users looking for basic word processing will need to look to the more-capable Notepad, the free-to-use online version of Microsoft Word, or a free alternative like LibreOffice.

Notepad’s spellcheck and autocorrect are rolling out to everybody after 41 years Read More »

brussels-explores-antitrust-probe-into-microsoft’s-partnership-with-openai

Brussels explores antitrust probe into Microsoft’s partnership with OpenAI

still asking questions —

EU executive arm drops merger review into US tech companies’ alliance.

EU competition chief Margrethe Vestager said the bloc was looking into practices that could in effect lead to a company controlling a greater share of the AI market.

Enlarge / EU competition chief Margrethe Vestager said the bloc was looking into practices that could in effect lead to a company controlling a greater share of the AI market.

Brussels is preparing for an antitrust investigation into Microsoft’s $13 billion investment into OpenAI, after the European Union decided not to proceed with a merger review into the most powerful alliance in the artificial intelligence industry.

The European Commission, the EU’s executive arm, began to explore a review under merger control rules in January, but on Friday announced that it would not proceed due to a lack of evidence that Microsoft controls OpenAI.

However, the commission said it was now exploring the possibility of a traditional antitrust investigation into whether the tie-up between the world’s most valuable listed company and the best-funded AI start-up was harming competition in the fast-growing market.

The commission has also made inquiries about Google’s deal with Samsung to install a modified version of its Gemini AI system in the South Korean manufacturer’s smartphones, it revealed on Friday.

Margrethe Vestager, the bloc’s competition chief, said in a speech on Friday: “The key question was whether Microsoft had acquired control on a lasting basis over OpenAI. After a thorough review we concluded that such was not the case. So we are closing this chapter, but the story is not over.”

She said the EU had sent a new set of questions to understand whether “certain exclusivity clauses” in the agreement between Microsoft and OpenAI “could have a negative effect on competitors.” The move is seen as a key step toward a formal antitrust probe.

The bloc had already sent questions to Microsoft and other tech companies in March to determine whether market concentration in AI could potentially block new companies from entering the market, Vestager said.

Microsoft said: “We appreciate the European Commission’s thorough review and its conclusion that Microsoft’s investment and partnership with OpenAI does not give Microsoft control over the company.”

Brussels began examining Microsoft’s relationship with the ChatGPT maker after OpenAI’s board abruptly dismissed its chief executive Sam Altman in November 2023, only to be rehired a few days later. He briefly joined Microsoft as the head of a new AI research unit, highlighting the close relationship between the two companies.

Regulators in the US and UK are also scrutinizing the alliance. Microsoft is the biggest backer of OpenAI, although its investment of up to $13 billion, which was expanded in January 2023, does not involve acquiring conventional equity due to the startup’s unusual corporate structure. Microsoft has a minority interest in OpenAI’s commercial subsidiary, which is owned by a not-for-profit organization.

Antitrust investigations tend to last years, compared with a much shorter period for merger reviews, and they focus on conduct that could be undermining rivals. Companies that are eventually found to be breaking the law, for example by bundling products or blocking competitors from access to key technology, risk hefty fines and legal obligations to change their behavior.

Vestager said the EU was looking into practices that could in effect lead to a company controlling a greater share of the AI market. She pointed to a practice called “acqui-hires,” where a company buys another one mainly to get its talent. For example, Microsoft recently struck a deal to hire most of the top team from AI start-up Inflection, in which it had previously invested. Inflection remains an independent company, however, complicating any traditional merger investigation.

The EU’s competition chief said regulators were also looking into the way big tech companies may be preventing smaller AI models from reaching users.

“This is why we are also sending requests for information to better understand the effects of Google’s arrangement with Samsung to pre-install its small model ‘Gemini nano’ on certain Samsung devices,” said Vestager.

Jonathan Kanter, the top US antitrust enforcer, told the Financial Times earlier this month that he was also examining “monopoly choke points and the competitive landscape” in AI. The UK’s Competition and Markets Authority said in December that it had “decided to investigate” the Microsoft-OpenAI deal when it invited comments from customers and rivals.

© 2024 The Financial Times Ltd. All rights reserved. Please do not copy and paste FT articles and redistribute by email or post to the web.

Brussels explores antitrust probe into Microsoft’s partnership with OpenAI Read More »