Pete Huang

So again, the money has changed hands.

The tech is now exclusively sold by Microsoft and the people are now part of Microsoft, but it's not an acquisition.

Now, when this happened, people were like half impressed and half chuckling at this.

Like this is objectively a funny way to play this.

If you're Microsoft, you see the FTC blocking stuff.

You know that whatever acquisition you announce would get held up for two years and potentially not happen at all.

This is a very creative way to get around that.

At the same time, this for sure is going to get investigated.

Like if we can tell that this is basically an acquisition, certainly the FTC is going to get involved.

So that's the first inquiry this week, the FTC getting involved again with the Microsoft inflection deal to figure out what was actually going on there.

The second set is into NVIDIA, Microsoft, and OpenAI.

Now there's not clear accusation of any wrongdoing here by any of these companies.

It's more of the FTC just saying they want to look around a little bit and just proactively check if there's been anything weird that's been going on.

Now if there had to be a reason why these companies should be acquired into, it would be something like this.

For Nvidia, their chips have been extremely dominant.

Nvidia chips are the go-to product for anyone doing stuff with AI.

And those chips are coupled with the software layer that Nvidia has built specifically to work with their chips.

So some possible complaints here might relate to how much Nvidia locks their customers into their products or how they get sold.

So for example, Nvidia chips are super, super in demand and they've been completely backlogged with their orders.

If Nvidia chose favorites in how orders were prioritized, then that might be an unfair business practice.