The AdC has published a short paper on access to AI models and competition. This is the second paper in a Short Paper Series, following a first on access and use of data in generative AI.
The generative AI models consumers and businesses use – specialised models – are built from other AI models – foundation models – which were adapted to specific use cases.
Competition and innovation in specialised models will, therefore, depend on how open foundation models are.
Open foundation models create more choice and flexibility for downstream AI developers and foster ecosystems of open AI development.
However, the fact that AI models are open or open source, however, does not preclude potential anticompetitive strategies. Both foundation models developers and cloud providers may have the incentives to hamper the ability of downstream developers to compete. In addition, AI model openness may be instrumental in lock-in strategies where models are initially open but closed-off in future versions, and in strategies to gain market power and then leveraging it in adjacent markets.