Promote a Sharp-Edged Competition Toolkit to De-Rig the AI Market

Federal policymakers canpromote a robust competition toolkit, with a particular focus on abuse of dominance in the AI supply chain and energy sector.

Structural Separation

Structural separation is a tool to break up big companies so they cannot own multiple stages of a supply chain. In the AI market, structural separation may look like preventing cloud companies from participating in the market for AI foundation models, requiring that Big Tech firms divest their cloud computing businesses from the rest of their corporate structure, preventing AI foundation model companies from participating in other markets related to AI, or preventing chip designers from investing in AI development companies. It also may look like preventing private-equity firms from owning energy utility companies and power companies, or Big Tech companies from owning energy companies and data centers.

Heightened Scrutiny of Mergers, Acquisitions, and Partnerships

Require heightened scrutiny of mergers, acquisitions, and partnerships involving Big Tech hyperscalers and/or private-equity firms and their subsidiaries.

Bright-Line Rules

Rather than rely exclusively on enforcement of antitrust laws after a harm has already occurred, ex ante rules proactively prevent harm before it can occur. Enforcers can use these proactive regulations to prevent Big Tech hyperscalers from self-preferencing their own products or engaging in discriminatory treatment.