FTC Probes Amazon’s Deal With Adept Amid Heightened Scrutiny of Tech Giants

The FTC is scrutinizing Amazon’s deal with AI startup Adept, seeking more information about the tech giant’s move to hire most of Adept’s team and license its technology, according to an exclusive Reuters report.

Key details of the deal: Amazon’s acquisition playbook involved hiring Adept’s team and licensing its AI technology:

• Adept announced that its plans to develop “useful general intelligence and an enterprise agent product” would have required significant focus on fundraising, leading to the deal with Amazon.
• The FTC’s informal inquiry may not necessarily lead to a full investigation or enforcement action, but it highlights the close attention regulators are paying to major tech companies’ investments and partnerships in the AI space.

Regulatory oversight of AI deals: The FTC’s interest in the Amazon-Adept deal underscores the agency’s increasing scrutiny of the AI industry:

• In January 2024, the FTC launched an inquiry into generative AI investments and partnerships, signaling its intent to closely monitor the rapidly evolving sector.
• The informal nature of the current inquiry suggests that the FTC is gathering information to assess potential anti-competitive implications or other concerns related to the deal.

Broader implications: As AI continues to advance and major tech players vie for dominance in the field, regulatory oversight is likely to intensify:

• The FTC’s move to gather more information about the Amazon-Adept deal reflects a growing concern among regulators about the concentration of AI talent and technology among a few powerful tech companies.
• While the outcome of this particular inquiry remains uncertain, it highlights the complex landscape that tech giants must navigate as they pursue AI partnerships and acquisitions in an increasingly regulated environment.