FTC Asks Amazon for Details on Deal with AI Startup Adept amid Growing Concerns

The US Federal Trade Commission (FTC) has shifted its focus to Amazon’s recent deal to hire top executives and researchers from artificial intelligence startup Adept. According to a source familiar with the matter speaking to Reuters, the FTC has requested more details on the transaction, signaling a growing concern regarding AI deals in the tech industry.

The inquiry stems from Amazon’s announcement last month that it would be bringing onboard Adept’s Chief Executive David Luan and other key members, as well as licensing some of the startup’s technology. While such requests for information do not always lead to formal investigations or enforcement actions, it underscores the FTC’s interest in scrutinizing partnerships between Big Tech companies and AI startups.

Amazon’s move to hire talent from Adept comes as the tech giant aims to compete with rivals like Google and Microsoft in developing large language models for rapid responses to complex queries. Reuters previously reported on Amazon’s establishment of the Artificial General Intelligence (AGI) team, which is focused on advancing large language models. David Luan now leads the “AGI Autonomy” team at Amazon, composed of several former Adept employees and reporting to Rohit Prasad, head of the AGI team.

Founded in 2022, Adept gained attention by raising significant funding to train large language models for enterprise use. Despite its initial promise, the startup struggled to launch successful commercial products. The details of Amazon’s compensation to Adept investors or the specifics of the licensing fees remain undisclosed.

Both Amazon, Adept, and the FTC have refrained from commenting on the matter. However, the FTC is already investigating a similar scenario involving Microsoft and Inflection AI, raising concerns about potential merger disclosure requirements being bypassed. Amazon’s investment in AI startup Anthropic highlights its continued interest in the AI space.

The FTC’s broader review of AI investments and partnerships within the tech industry extends to examining the influence of these collaborations on strategy, pricing, product access, and personnel decisions. With US antitrust regulators also monitoring potential anti-competitive behavior by Big Tech companies in the AI sector, the landscape for tech firms engaging in AI partnerships is under increasing scrutiny.