Amazon Faces Scrutiny Over Hiring Deals with AI Startups
Amazon is under the lens of the U.S. Federal Trade Commission for its recent move to hire executives and researchers from the artificial intelligence startup Adept. This move has raised concerns about how AI deals are structured and follows a broader review of partnerships between Big Tech companies and leading AI startups.
Informal Inquiry into Amazon
– The FTC has made an informal inquiry into Amazon’s hiring of top talent from Adept
– The focus is on Amazon’s announcement of hiring Adept Chief Executive David Luan and others
– Amazon will also license some of Adept’s technology
– Such inquiries may not lead to official investigations or enforcement actions
Amazon’s Efforts to Boost AI Capabilities
– Amazon aims to catch up with Google and Microsoft in developing large language models
– Amazon has created an Artificial General Intelligence (AGI) team
– David Luan is now leading the AGI Autonomy team at Amazon
Background on Adept and Amazon
– Adept is an AI startup founded in 2022 that raised over $400 million in funding
– The company focused on training large language models for enterprise tasks
– Amazon has not disclosed details of compensation to Adept investors or licensing fees
– Amazon’s AI startup investments include a $4 billion stake in Anthropic
FTC Investigations and Concerns
– The FTC is also investigating a similar hiring move by Microsoft involving Inflection AI
– Microsoft agreed to pay a $650 million licensing fee
– U.S. antitrust enforcers are concerned about Big Tech companies leveraging AI advantages to stifle competition
– The FTC and Justice Department are monitoring potential probes into Microsoft, OpenAI, and Nvidia
Hot Take: Amazon’s AI Hiring Strategy Under FTC Scanner
Amazon’s hiring deals with AI startups are drawing regulatory scrutiny, with the FTC investigating its move to hire talent from Adept. The focus is on how these deals impact competition and innovation in the AI space. As Amazon ramps up its AI capabilities, it faces increased scrutiny over its hiring and partnership strategies.
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