The Federal Trade Commission (FTC) is intensifying its focus on generative AI. Central to their antitrust concerns is the practice of exclusive dealing. While such arrangements can be competitive, they raise red flags when they enable a firm to control essential market segments.

The FTC is especially vigilant about incumbents that provide both compute services and generative AI products, saying these entities could potentially disadvantage newcomers, especially through exclusive deals involving key compute resources (like GPUs).

It’s clear that the FTC is aiming to strike a balance between fostering innovation and preventing monopolistic practices in the generative AI sector. But as generative AI becomes increasingly integral to business operations, a question arises: Should the FTC be doing this?

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