CMA points to "interconnected web" involving Google, Apple, Microsoft, Meta and Amazon
Big tech's dominance of the rapidly developing artificial intelligence market is a matter of "Real concern", the competition regulator has warned.
The Competition and Markets Authority is looking into the new breed of powerful AI tools - foundation models.
They include text and image generators, such as ChatGPT.The CMA found an "Interconnected web" of AI partnerships involving the same firms: Google, Apple, Microsoft, Meta, Amazon, and chip-maker Nvidia.
The CMA said that a small number of incumbent technology firms - already powerful in the most important digital markets - were also now taking the lead with foundation models.
The big tech firms have strong positions in terms of computing power, and access skilled employees, the CMA said, and can influence access to the market through apps and platforms.
The CMA said it wanted to learn from previous experience in digital markets where "Winner takes all dynamics" led to the rise of a small number of powerful platforms.
In a new paper, it found more than 90 connected investments and partnerships involving the same small number of tech giants.
The watchdog is already undertaking a review of Microsoft's multi-billion dollar partnership with OpenAI.But it said it recognised "The huge wealth of resources, expertise and innovation capability these large firms can bring to bear".
These should not "Insulate" powerful firms from competition.
Microsoft announces new AI office in UK. The firm says its new London hub will "Drive pioneering work" to advance AI models and development.