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July 17, 2024, 7:07 a.m.
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Regulatory Scrutiny Intensifies on AI Sector Deals Involving Tech Giants

Regulatory scrutiny around the AI sector has prompted investigations into recent deals between tech giants and AI startups. The UK’s Competition and Markets Authority is probing Microsoft’s hiring of key staff from AI startup Inflection. The hiring included Inflection co-founder Mustafa Suleyman, who now heads Microsoft’s in-house AI efforts. Regulators want to determine if the hiring deal was an attempt to bypass antitrust rules that may have been triggered by a straightforward acquisition. The US Federal Trade Commission is also investigating Amazon’s recent deal with AI startup Adept.

Both investigations are part of a broader trend of regulators examining potential rule-skirting in the AI sector. Additionally, the UK’s new Labour government plans to establish legislation requiring requirements for AI model development. Meanwhile, the EU has officially published its AI Act, with European privacy regulators expressing interest in enforcing the new law. In other news, Google’s chief scientist Jeff Dean cautioned against overestimating AI’s role in the company’s rising carbon emissions. Finally, there are calls for Australian computer scientist Craig Wright, who claimed to be Bitcoin's creator, to face perjury and forgery charges after losing in court.



Brief news summary

Regulators in the UK, US, and EU are increasing their scrutiny of major tech companies' activities in the AI sector. The UK's Competition and Markets Authority (CMA) has launched an initial probe into Microsoft's acquisition of staff from AI start-up Inflection, worth $650m in licensing fees. The CMA will decide whether to conduct a full investigation by 11 September. Separately, the US Federal Trade Commission is reportedly scrutinising Amazon's recent deal with AI start-up Adept. Lawmakers and regulators on both sides of the Atlantic are concerned that major firms are buying up smaller rivals' talent.
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