The European Union's ambitious plans to develop and regulate artificial intelligence are facing criticism for potentially fueling the dominance of Big Tech companies. A recent report by the Dutch non-profit SOMO warns that EU governments' investments in AI may inadvertently strengthen US tech giants like Amazon, Google, and Microsoft.
The report highlights the dependence of top generative AI startups on Nvidia's specialized chips and cloud services from Microsoft, Amazon, or Google to build and deploy their models. This reliance on Big Tech infrastructure raises concerns that the EU's strategy to compete in the AI race may ultimately reinforce US dominance.
Nine out of 12 startups analyzed host their models on platforms run by Amazon, Microsoft, or Google, making these companies gatekeepers to businesses and public bodies wanting to use AI. This concentration of power in the hands of a few Big Tech companies poses significant risks to the development of a competitive AI ecosystem in Europe.
To mitigate these risks, EU and national competition authorities are urged to investigate cloud contracts and limit market concentration. Authorities should also ensure that switching providers is possible to prevent lock-in effects and promote competition.
The EU's approach to AI regulation has been criticized for potentially stifling innovation and driving AI development to other regions with less stringent rules. As the EU navigates the complex landscape of AI development and regulation, it must balance fostering innovation with mitigating risks to prevent Big Tech dominance and ensure a competitive AI ecosystem.
