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The Department of Justice is reportedly preparing to announce an investigation into Nvidia, Microsoft, and OpenAI due to concerns about their dominance in the AI industry.

According to multiple media outlets citing government sources, The DOJ and Federal Trade Commission (FTC) will conduct antitrust investigations into these major tech companies, examining their influence in the rapidly expanding AI sector. The DOJ will focus on Nvidia, while the FTC will investigate Microsoft and OpenAI. Subpoenas have already been sent to some of the companies involved as these probes begin.

The investigations are the most significant regulatory actions taken in the AI industry to date. The DOJ’s inquiry into Nvidia will scrutinize its chip manufacturing and distribution agreements. Nvidia’s stock has seen remarkable growth, quadrupling in price over the past year. Meanwhile, the FTC will look into Microsoft’s dealings, particularly its recent contract with Inflection AI. This contract included hiring the startup’s founder and staff and licensing its technology, which regulators suspect may have been structured to circumvent acquisition rules.

A Microsoft spokesperson expressed confidence in the company’s compliance with all regulations. The spokesperson said, “Our agreements with Inflection gave us the opportunity to recruit individuals at Inflection AI and build a team capable of accelerating Microsoft Copilot, while enabling Inflection to continue pursuing its independent business and ambition as an AI studio.”

This development comes after the the FTC launched a similar investigation into Microsoft, Amazon, and Google’s investments in OpenAI and AI startup Anthropic earlier this year.