Sens Wyden, Welch, Warren Urge Biden Administration to Crack Down on Big Tech for Massive AI Consolidation

Senators Ron Wyden (D-OR), Peter Welch (D-VT), and Elizabeth Warren (D-MA) urged Federal Trade Commission (FTC) Chair Lina Khan and Department of Justice (DOJ) Assistant Attorney General Jonathan Kanter to crack down on the massive consolidation of emerging generative artificial intelligence (AI) by tech giants such as Amazon, Microsoft, and Google. Massive consolidation stifles innovation or eliminates potential competitors, limits consumers’ ability to choose a variety of products, and puts America’s national security at risk. “Through partnerships, equity deals, acquisitions, cloud computing credits, and other arrangements, the largest technology companies are entrenching themselves as the dominant firms in the nascent generative AI industry,” the senators wrote. “We’re pleased that the FTC and DOJ have already begun to investigate threats to competition in parts of the generative AI ecosystem. But it has become clear that sustained, pointed action is necessary to fight undue consolidation across the industry. This is particularly true for deals that could lessen competition but are structured in ways that could skirt regulatory scrutiny.”