July 12, 2024

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

Washington, D.C. — U.S. Senators Ron Wyden, D-Ore., Peter Welch, D-Vt., and Elizabeth Warren, D-Mass., 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.”

The senators called for an investigation into a recent deal between Amazon and Adept, an AI startup that announced approximately 66 percent of its employees were hired by Amazon. As a result, Amazon not only acquired the AI startup, but also avoided any potential oversight from the FTC and DOJ. This strategic deal is the latest in a string of arrangements among tech firms that have created an entire generative AI industry centered around massive consolidation. 

Wyden has repeatedly called for responsible oversight of AI innovation to protect consumers and stop Big Tech’s anticompetitive behavior. In January, Wyden and Welch introduced the Preventing the Algorithmic Facilitation of Rental Housing Cartels Act of 2024, which would ensure housing corporations cannot use pricing algorithms to inflate rent. In September 2023, Wyden  introduced the Algorithmic Accountability Act to protect people affected by AI models that make critical decisions like housing, credit, and education. 

The full letter is here.