The increasing dominance of Big Tech in the advanced AI sector has raised concerns for the Competition and Markets Authority (CMA) in the UK. CEO Sarah Cardell has expressed her “real concerns” regarding the industry’s development in a recent paper on foundational AI models. The CMA’s paper highlights the growing interconnection and concentration among developers in the cutting-edge tech sector, which is fueling the rise of generative AI tools. Google, Amazon, Microsoft, Meta, and Apple, collectively known as GAMMA, are consistently involved in various aspects of the AI value chain, according to the CMA. While recognizing the potential benefits of partnerships in the tech ecosystem, the regulator also warns against the risks posed by dominant partnerships and integrated firms, which could undermine competition in open markets.
The CMA’s paper focuses on a form of AI that utilizes extensive data and computational resources, potentially serving as the foundation for various applications. The regulator expressed concern that the foundational model (FM) sector is developing in ways that could result in negative market outcomes. The paper identifies three linked risks to fair competition: firms controlling important inputs for developing general-purpose AI models, tech giants leveraging their dominance to influence choices in GenAI services, and partnerships potentially strengthening market power across the value chain.
During a legal event in Washington, D.C., Sarah Cardell highlighted the “winner-take-all dynamics” reminiscent of earlier web development eras. She urged regulators to learn from past mistakes in overseeing this next phase of digital evolution. The CMA’s update report outlines “indicative factors” that may raise concerns regarding FM partnerships, including partners’ control over AI inputs and distribution channels.
The CMA began examining the high-end AI market last May and released a set of principles for the responsible development of generative AI. These principles aim to guide the watchdog’s supervision of this rapidly evolving market. Since then, the regulator has intervened to investigate the close ties between OpenAI and Microsoft. OpenAI, the creator of the popular AI chatbot ChatGPT, has significant investment from Microsoft. The updated paper addresses the fast pace of change in the market.
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