Autorité De La Concurrence – Opinion On Generative AI

The French competition authority Autorité de la concurrence (“Autorité”) has issued its opinion on the competitive dynamics of the generative AI sector which explains the possible competition risks that may arise and recommendations to these risks. Autorité's opinion focuses on strategies by major digital companies to consolidate their market power in the generative AI value chain. It also examines potential barriers to entry for smaller undertakings.

Autorité explains in its opinion that generative AI sector has high barriers to entry:

• Firstly, developing foundation models in the generative AI sector requires significant computing power, typically provided by specialized AI chips such as GPUs from Nvidia or AI accelerators from companies like Google. These resources are not only expensive but also in high demand, making them a substantial barrier to entry for new players in the market.