US antitrust enforcer says ‘urgent’ scrutiny needed over Big Tech’s control of AI

Big Tech’s grip on AI tightens! US antitrust chief calls for urgent scrutiny of potential choke points in computing power, data and talent.

Jonathan Kanter, the top US antitrust enforcer, has emphasised the need for urgent scrutiny of the AI sector due to concerns about the concentration of power among a few major tech companies. Speaking to the Financial Times, Kanter highlighted the importance of examining monopoly choke points in computing power, data, cloud services, engineering talent, and access to essential hardware like GPUs. He warned that the AI sector is at its peak of competition and stressed the need for real-time, less invasive interventions.

In his third year at the Department of Justice, Kanter has pushed for tougher antitrust measures, collaborating closely with the FTC. He noted that GPUs, critical for training AI models, have become scarce, with Nvidia dominating the market. This raises concerns about how chipmakers allocate their products amid high demand. Government initiatives like the $39 billion Chips Act aim to boost domestic production, but antitrust regulators are vigilant about potential conflicts of interest and anti-competitive practices.

Kanter also pointed to Microsoft’s $13 billion investment in OpenAI and similar high-profile deals as indicative of an arms race in the AI sector. He noted that regulators are examining these relationships and the potential circumvention of antitrust laws through tactics like “acqui-hires.” Kanter emphasised that antitrust actions would focus on market behaviors, regardless of how companies present their deals.