Competition between AI Foundation Models: Dynamics and Policy Recommendations

Abstract

Generative AI is set to become a critical technology for our modern economies. If we are currently experiencing a strong, dynamic competition between the underlying foundation models, legal institutions have an important role to play in ensuring that the spring of foundation models does not turn into a winter with an ecosystem frozen by a handful of players.

Keywords: Foundation AI, large language models, LLMs, generative AI, competition, antitrust, increasing returns, network effects, intellectual property, public policy, ChatGPT, Google Bard, open source

JEL Classification: K21, K20, 030, 031, 032, 033, 034, 038,