The rise of data centers has been beneficial for startups, reducing costs and making it easier to secure funding. However, economists warn that over time, AI startups will struggle to compete with the tech giants controlling the data centers. The article suggests that Google's approach of partnering with startups and contributing to open-source projects could be a more sustainable model. The Federal Trade Commission is also taking steps to regulate the sector, requesting information on AI investments from the big tech companies.
Key takeaways:
- About 65% of the capacity in global data centers is owned by Amazon, Google, and Microsoft, and they are racing to control the market as data centers are essential infrastructural technology for most companies.
- Big Tech companies are offering AI startups "credits" for using their cloud services, which is a form of control over potential competitors.
- While cloud computing has been beneficial for startups due to falling prices and ease of access, there are concerns about the monopolization of data centers by Big Tech companies.
- Regulators are becoming more aware of the potential anticompetitive behavior of Big Tech companies and are taking steps to prevent them from using data centers to stifle innovation.