---
title-long: "Innovation, Market Concentration, and Open Development"
title-short: Development and Market Dynamics
document-id: developing
tags:
 - innovation
 - competition
 - regulation
# abstract in text format
abstract: >
  The unique intersection of technical innovation, reliance on data at extraordinary scales,
  rapid deployment across most existing economic domains and infrastructures, and dependence on dedicated
  computation centers that characterize modern AI systems shape its commercial
  development and competition dynamics in new ways that strain existing market systems.
# introduction and sections in HTML format
introduction: >
  <p>
    “AI” and Machine Learning systems are already ubiquitous, deployed in social
    media and all kinds of digital services. AI can be compared to “Software 2.0” -
    AI literacy is becoming part of the basic set of skills to build any kind of 
    technology. Relying exclusively on AI systems that are developed and served by a 
    handful of companies would have strong negative impacts on innovation and competition.
  </p>

  <p>
    Having access to data is a significant competitive bottleneck, including: data about
    how people are using AI systems - data about what AI systems are better or worse out - 
    use data and feedback from users - proprietary data to fine-tune models - internal databases
    for RAG-like techniques. Sending all of that data to a few companies further centralizes 
    their role in adapting new technology. In addition to enabling anti-competitive practices, 
    this also limits the breadth of technology that can be developed - better to have smaller
    companies work on their own hundreds of thousands of use cases than to have central entities
    decide what is worth deploying and providing a “just OK” unique solution for everything.
  </p>

  <p>
    Access to compute has become a strong market concentration point for generative AI systems,
    and there is strong vertical integration between the cloud providers and “frontier” model developers.
    Mitigating that vertical integration is essential. Providing more efficient and purpose-specific systems
    breaks some of that dependence on large cloud compute.
  </p>
sections:
  - section-title: Openness and Innovation
    section-text: >
      <p>
        Section text, HTML-formatted, TODO
      </p>
  - section-title: Regulation and Innovation
    section-text: >
      <p>
        Section text, HTML-formatted, TODO
      </p>
  - section-title: Competition and Market Concentration Dynamics
    section-text: >
      <p>
        Section text, HTML-formatted, TODO
      </p>
resources:
- resource-name: Google Doc topic Card
  resource-url: https://docs.google.com/document/d/17ksxEVyBcRGL6e6da4OPbjRxuCT5iEx5Ih67bj1Fc_w/
contributions: >
  Yacine Jernite wrote this document.