On a recent episode of the Joe Rogan Podcast, billionaire Marc Andreessen voiced his concerns about the world of AI, implying that this industry is vulnerable to serious tech monopolization. According to this Silicon Valley veteran, there may only be a few AI companies in the future – and these companies could be at least somewhat influenced by the government. This is worrying news for anyone who is planning to launch an AI startup in the near future – but is there any truth to it? What might happen if the AI world becomes monopolized? Is there any way to legally push back against this lack of competition?

The Tech World Already Struggles With Serious Monopolization

First, it is important to recognize that AI arose from an industry that is already struggling with monopolization. You might argue that this industry is dominated by just a few names, and the U.S. government is not doing much to enforce anti-trust laws within the tech world.

Google represents a clear example, and many lawmakers believe that this company has a complete and utter monopoly on search engines. While there are certainly alternatives, barely anyone uses them – and some say that Google should be “broken up.”

Efforts to break Google up have seemingly increased in recent months, with the Biden administration seemingly attempting to get this done before the presidential transition. The Department of Justice wants Google to sell its Chrome browser, one of the most important aspects of its company. The DOJ is also trying to separate the parent company from its other components, including Android and its AI programs. These AI programs include Google Bard and Tensor AI.

The latter point is particularly noteworthy. The DOJ reportedly believes that Google’s dominance in AI may strengthen its monopoly over search. According to their logic, machine learning could analyze data to provide users with more personalized search results. While this might lead to a better experience for the end user, it may also make it extremely challenging for other search engines to compete.

It seems like with each passing year, Google is getting further and further ahead of its competitors – and AI is not leveling the playing field in the way that many had hoped. Not long ago, people began saying that Google’s search engine was obsolete with the arrival of players like OpenAI.

Speaking of OpenAI, it is worth noting that Microsoft promptly snapped up and consumed this new arrival on the scene. In its defense, Microsoft has argued that it did not actually acquire OpenAI in the traditional sense. Instead, it seems to have signed an agreement with the AI company to receive its profits. Some sources say that Microsoft owns a 49% ownership stake in the company, and many would say that this makes Microsoft the de facto owner.

Regardless of how you want to look at this situation, it does not exactly reassure those who are concerned about the monopolization. As soon as a new company like OpenAI arrived out of left field, it was ensnared by one of the biggest names in the tech industry.

A Handful of Tech Companies Already Dominate AI

One has to wonder how much innovation we can truly expect to see if the only people who control AI in the United States are established big tech companies. According to Inequality.org, there are only six major players in the AI world: Microsoft, Google, Apple, Amazon, Nvidia, and Meta. While smaller AI companies certainly exist, their ability to compete with these bigger names is increasingly doubtful. If a smaller AI startup does manage to pose a threat, one of these “big six” tech companies would simply acquire them.

Cloud Computing: An Unfair Advantage in the World of AI

 Inequality.org also points to a major weapon these companies bring to the table: Cloud computing. The amount of computing power needed to train a new AI model is simply astounding – but cloud computing allows companies to leverage this processing power with greater ease. There is only one problem: Microsoft, Amazon, and Google control 66% of the world’s cloud computing market.

Digital Ecosystems Under Lock and Key

Major tech companies also have an advantage in the world of AI because they already have their own established digital ecosystems. For example, the Google Pixel 9 was the first Google smartphone to be “fully powered” by its Gemini AI system. Consumers did not ask to access this AI system – it came pre-installed on their smartphones. The newest Apple smartphones also come with their own unique AI system pre-installed. When you type in a search query on Google Chrome, you’ll see Gemini offering its own information at the top of the results.

Once a tech company has “captured” consumers in its digital ecosystem, it can feed them a host of new products and services. In contrast, consumers must make a conscious effort to leave their ecosystems and experiment with smaller AI systems. Some never even consider these smaller names, and they are content with whatever they are given within their ecosystem.

Can You Sue a Tech Company for Creating a Monopoly?

You might be wondering whether you can sue these big tech names for creating such a challenging monopoly. While the Federal Trade Commission usually handles these cases, it is possible to file a civil lawsuit against a tech company for violating anti-trust laws. To be successful, you would need to show that your startup suffered real damages as a result of this monopoly. You might also sue a tech company for stealing your proprietary code or trade secrets in order to strengthen its own AI monopoly.

Consult With an Experienced Tech Lawyer

 If you’ ae concerned about monopolization in the world of AI, it makes sense to speak with an experienced tech lawyer. These legal professionals can help you understand the exact definition of a “monopoly” in the tech world, and they may offer guidance on how to keep your startup alive. John P. O’Brien has been following the rise of AI from the very beginning, and he is familiar with all of its legal implications. Speak with us today to learn more about helping your AI startup reach its full potential.