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US Regulators Reportedly Plan to Investigate Microsoft's Cloud Business

FILE PHOTO: A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. REUTERS/Carlo Allegri/File Photo
FILE PHOTO: A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. REUTERS/Carlo Allegri/File Photo
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US Regulators Reportedly Plan to Investigate Microsoft's Cloud Business

FILE PHOTO: A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. REUTERS/Carlo Allegri/File Photo
FILE PHOTO: A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. REUTERS/Carlo Allegri/File Photo

The US Federal Trade Commission is preparing to launch an investigation into anti-competitive practices at Microsoft's cloud computing business, the Financial Times reported on Thursday, citing people with direct knowledge of the matter.
The regulators are examining allegations that the software giant is potentially abusing its market power in productivity software by imposing punitive licensing terms to prevent customers from moving their data from its Azure cloud service to other competitive platforms, the report said.
Tactics being examined include substantially increasing subscription fees for those that leave, charging steep exit fees and allegedly making its Office 365 products incompatible with rival clouds, according to the report.
FTC declined to comment while Microsoft did not immediately respond to Reuters' requests for comment.

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New Nvidia AI Chips Face Issue with Overheating Servers, The Information Reports

The logo of NVIDIA as seen at its corporate headquarters in Santa Clara, California, in May of 2022. Courtesy NVIDIA/Handout via REUTERS/File Photo
The logo of NVIDIA as seen at its corporate headquarters in Santa Clara, California, in May of 2022. Courtesy NVIDIA/Handout via REUTERS/File Photo
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New Nvidia AI Chips Face Issue with Overheating Servers, The Information Reports

The logo of NVIDIA as seen at its corporate headquarters in Santa Clara, California, in May of 2022. Courtesy NVIDIA/Handout via REUTERS/File Photo
The logo of NVIDIA as seen at its corporate headquarters in Santa Clara, California, in May of 2022. Courtesy NVIDIA/Handout via REUTERS/File Photo

Nvidia's new Blackwell AI chips, which have already faced delays, have encountered problems with accompanying servers that overheat, causing some customers to worry they will not have enough time to get new data centers up and running, the Information reported on Sunday.
The Blackwell graphics processing units overheat when connected together in the customized server racks the company has designed, the report said, citing sources familiar with the issue, Reuters reported.
The AI chipmaker has asked its suppliers to change the design of the racks several times to resolve overheating problems, according to Nvidia employees who have been working on the issue, as well as customers and suppliers with knowledge of it, the report said without naming the suppliers.
Nvidia did not immediately respond to a request for comment outside regular business hours.
Nvidia unveiled Blackwell chips in March and had earlier said they would ship in the second quarter before encountering delays, potentially affecting customers such as Meta Platforms , Alphabet's Google and Microsoft.
Nvidia's Blackwell chip takes two squares of silicon the size of the company's previous offering and binds them into a single component that is 30 times speedier at tasks like providing responses from chatbots.