Technology giant Alphabet’s (GOOGL) Google has asked the U.S. FTC (Federal Trade Commission) to break up rival Microsoft’s (MSFT) exclusive deal with OpenAI. Microsoft has the sole rights to offer ChatGPT maker OpenAI’s tools and apps on its cloud servers, leaving behind other players from the generative AI race. The Information was the first to report this news, citing people familiar with the matter.
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The report said that Google made the request when the FTC approached it to investigate another broader investigation. The FTC was enquiring Google about Microsoft’s business practices, according to people involved in the discussions.
Here’s Why Google Wants the MSFT-OpenAI Deal to End
Microsoft is a big investor in the Sam Altman-led startup OpenAI, and also has the exclusive rights to sell its products on the cloud. Customers who want to purchase OpenAI products have to buy Microsoft bundles to gain access to them. Other players such as Google and Amazon (AMZN), who also boast well-established cloud server units, want to host OpenAI models due to the robust demand for the startup’s offerings.
Meanwhile, Google is facing its own antitrust issues, where a judge is considering pushing Google to sell off its Chrome browser and Android operating system. Moreover, Microsoft, OpenAI, and Nvidia (NVDA) are also being probed by regulators for their dominant position in the burgeoning AI sector.
Is Google a Good Stock to Buy?
Wall Street is highly optimistic on GOOGL stock despite the looming antitrust cases. On TipRanks, GOOGL stock has a Strong Buy consensus rating based on 27 Buys and six Hold recommendations. Also, the average Alphabet Class A price target of $209.21 implies a nearly 13% upside potential from current levels. Year-to-date, GOOGL shares have gained 33%.
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Is Microsoft a Good Stock to Buy Right Now?
Analysts are bullish about Microsoft stock’s trajectory owing to its well-established business model. On TipRanks, MSFT stock has a Strong Buy consensus rating based on 26 Buys and two Holds. The average Microsoft price target of $497.36 implies 12.2% upside potential from current levels. Year-to-date, MSFT shares have gained 18.8%.
