FTC Focuses on Generative AI and Antitrust Concerns

The Federal Trade Commission (FTC) is intensifying its focus on generative AI. Central to their antitrust concerns is the practice of exclusive dealing. While such arrangements can be competitive, they raise red flags when they enable a firm to control essential market segments.

The FTC is especially vigilant about incumbents that provide both compute services and generative AI products, saying these entities could potentially disadvantage newcomers, especially through exclusive deals involving key compute resources (like GPUs).

It’s clear that the FTC is aiming to strike a balance between fostering innovation and preventing monopolistic practices in the generative AI sector. But as generative AI becomes increasingly integral to business operations, a question arises: Should the FTC be doing this?

Author’s note: This is not a sponsored post. I am the author of this article and it expresses my own opinions. I am not, nor is my company, receiving compensation for it.

About Shelly Palmer

Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named LinkedIn’s “Top Voice in Technology,” he covers tech and business for Good Day New York, is a regular commentator on CNN and writes a popular daily business blog. He's a bestselling author, and the creator of the popular, free online course, Generative AI for Execs. Follow @shellypalmer or visit shellypalmer.com.



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