Big Tech’s control over essential AI infrastructure, such as cloud services and app stores, is allowing them to set unfair terms for smaller competitors and squeeze them out, according to new research commissioned by Mozilla.

The new report, Stopping Big Tech From Becoming Big AI, was compiled by Max von Thun and Daniel Hanley from the Open Markets Institute, and delves into how AI is being built, who’s in control and what changes need to happen to ensure a fair and open AI ecosystem by taking a close look at the competitive landscape of AI.

It argues that a handful of big firms, like Microsoft backed OpenAI, Google, Amazon, Meta and Apple control key resources needed to develop advanced AI, such as data sets, computing power and infrastructure, with the result that smaller companies and independent innovators lack access to develop ‘outside-the-box’ AI models.

Mozilla asserts that these big players buy up or do deals with smaller AI startups which often evade traditional competition controls, stopping smaller firms from challenging big tech and competing on an even playing field.

As the report points out, although there is plenty of “downstream” competition when it comes to the deployment of AI through various applications and services, that diversity is built on only a handful of “upstream” inputs, including foundation models, cloud computing, semiconductors, and data controlled by a small number of entrenched tech giants.

One prominent, and very public, example of this monopoly is the extreme financial imbalance of AI startups who count on these tech giants for funding, such as the $13 billion (£9.9 billion) invested by Microsoft into OpenAI, and the $6 billion (£4.6 billion) Google and Amazon have invested into Anthropic.

With Accel estimating that AI and cloud technology funding will hit $79.2 billion (£60.8 billion) by the end of 2024, it’s worth asking whether such huge sums should be placed in the hands of so few, especially when there is evidence that AI mega-firms like OpenAI are focused more on the commercialisation of their products than innovation and safety.

Technical expertise can also be in short supply for smaller outfits. As the report notes, a number of industry studies have shown many organisations are having difficulty filling AI-specific technical roles, with one UK survey of IT managers found that 72% faced challenges in recruiting the talent they need. 

Those who have that kind of expertise are either already working for bigger companies, or are lured away thanks to the deep pockets of Big Tech. Back in March, Inflection AI lost its CEO, Mustafa Suleyman, after he was poached by Microsoft, along with other employees. 

Mozilla’s report claims that one potential remedy is for governments worldwide to create more regulation around AI development, and to closely monitor the market to keep up with rapid developments. 

The report argue that strong action is needed to avoid recreating the same market concentration and anti competitive tactics seen in other digital markets, which should also include the possibility of regulators breaking up dangerous concentrations of power.

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One example of this could be in forcing Big Tech firms to divest their cloud computing businesses, which could prevent these companies from using their infrastructure to give an unfair competitive advantage to their own AI services, and make critical resources like computing power and data more accessible.

“With artificial intelligence set to play an increasingly important role in our lives, society stands at a crossroads,” wrote von Thun and Hanley.

“We remain at this pivotal crossroads because, although a few tech giants are clearly leading the AI race, they have yet to fully entrench their power over the technology in the way they have done it in countless other markets. This means governments – and competition authorities in particular – still have the ability to change the direction of travel, but they must act quickly.”