The Growing Concerns and Advancements in Generative AI
The Federal Trade Commission (FTC) has raised concerns about competition in the field of generative AI, which has the potential to transform various industries. The FTC highlights the control over essential inputs such as data, talent, and computational resources as potential barriers to entry for new players. It also warns against unfair methods of competition, including bundling, tying, exclusive dealing, and discriminatory behavior by incumbents. The open-source ecosystem is seen as a potential equalizer, but misuse and "open first, closed later" tactics could undermine competition. Network and platform effects can further concentrate market power. The FTC pledges to address unfair competition and support a vibrant marketplace for generative AI.