FTC Launches Informal Inquiry into Amazon’s Deal with AI Startup Adept

FTC Launches Informal Inquiry into Amazon’s Deal with AI Startup Adept

Key Points

  • The FTC has launched an informal investigation into Amazon’s deal with AI startup Adept, seeking more information about the agreement.
  • The investigation is part of a broader trend of increased regulatory scrutiny over tech companies’ investments and partnerships with AI startups.
  • Britain’s competition watchdog is also probing Microsoft’s hiring practices related to AI talent, reflecting international concerns.
  • U.S. lawmakers have highlighted the deal as an example of tech companies making moves to avoid antitrust scrutiny.

The Federal Trade Commission (FTC) has initiated an informal investigation into Amazon’s recent agreement with AI startup Adept. The inquiry seeks additional information about the deal announced last month, which involved Amazon hiring key executives and licensing technology from Adept. The information comes from an anonymous source who is not authorized to speak publicly on the matter.

Representatives from the FTC and Adept did not immediately respond to requests for comment on the investigation, which Reuters first reported. An Amazon spokesperson declined to provide details about the probe.

This inquiry is part of a broader trend of increased regulatory scrutiny over tech companies’ investments and partnerships with AI startups. In January, the FTC announced it was investigating recent AI deals by Amazon, Alphabet, and Microsoft, while the Department of Justice is examining Nvidia, the leading chip manufacturer driving the AI boom.

On a related note, Britain’s competition watchdog revealed on Tuesday that it had launched a probe into Microsoft’s hiring of top talent from startup Inflection AI. In April, the agency issued a report warning that partnerships like those between Microsoft and Inflection AI and Amazon and AI startup Anthropic could allow these tech giants to “shape these markets in their own interests.”

Lawmakers, including Senator Ron Wyden (D-Oregon), have highlighted Amazon’s deal with Adept as an example of tech companies licensing technology or making “acquihires” to circumvent antitrust scrutiny.

The agreement announced last month included Amazon hiring Adept co-founder and CEO David Luan and “a few other deeply talented team members” for its artificial general intelligence unit. Amazon also agreed to license Adept’s technology, multimodal models, and some datasets. In a blog post, Adept mentioned that developing AI models would have required substantial capital, and the Amazon deal allows it to focus on building AI agents.

This deal is Amazon’s latest significant investment in AI. The company has also invested billions into OpenAI competitor Anthropic and has developed generative AI products across its cloud computing, retail, and consumer electronics businesses.

EDITORIAL TEAM
EDITORIAL TEAM
TechGolly editorial team led by Al Mahmud Al Mamun. He worked as an Editor-in-Chief at a world-leading professional research Magazine. Rasel Hossain and Enamul Kabir are supporting as Managing Editor. Our team is intercorporate with technologists, researchers, and technology writers. We have substantial knowledge and background in Information Technology (IT), Artificial Intelligence (AI), and Embedded Technology.

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