As the long-pending antitrust cases against Google, Apple, and Amazon near resolution, many anticipate 2024 as a potential turning point for Big Tech. Despite ongoing legal actions, authorities may find themselves caught off guard by the escalating influence of artificial intelligence (AI), which is poised to further solidify Big Tech’s dominance in the economy.
The recent episode involving the dismissal and subsequent rehiring of OpenAI CEO Sam Altman highlighted a conflict between cautious board members and AI enthusiasts. Beyond this internal struggle, it exposed the intricate relationship between OpenAI and Microsoft, the principal investor in OpenAI’s commercial ventures. While OpenAI is structured as a nonprofit with board control, Microsoft’s concerns and an employee revolt compelled Altman’s reinstatement.
Microsoft, both an investor and a competitor, refrained from outright acquisition to avoid antitrust complications. However, if Microsoft exercises substantial control over OpenAI, it could raise concerns about an illicit collusive relationship, prompting investigations by the US Federal Trade Commission and the United Kingdom’s competition authority.
The OpenAI-Microsoft dynamic is just a fraction of the expanding AI oligopoly. A legal analysis by law professors Tejas Narechania and Ganesh Sitaraman reveals concentrated market power throughout the AI supply chain. Nvidia dominates chip manufacturing for AI, while Amazon, Google, and Microsoft hold sway over essential cloud computing services crucial for AI model training data storage.
These tech giants, along with Meta, control data collection, storage, and the development of critical AI models and applications. Collaborations, joint projects, and shared networks among major tech companies create opportunities for collusion or coordination, posing challenges for consumers.
Historically, tech behemoths have engaged in anticompetitive practices, such as agreements not to hire each other’s employees. Recent cases involving Google’s dominance in search and digital advertising underscore allegations of payments to maintain market control.
The interconnected web of relationships among tech executives echoes the Gilded Age “money trust” that colluded with industrial giants, leading to antitrust legislation and regulations. Big Tech’s influence now surpasses that of banks, exerting control over consumer behavior and providing essential services across various sectors.
The potential for economic concentration and corporate political power, reminiscent of historical monopolies, looms large as AI continues to permeate every industry. If AI fulfills its promise and becomes integral to the entire economy, it may usher in an era of unprecedented dominance by Big Tech.
