OpenAI, the developer of ChatGPT, has reached out to the European Commission to express concerns regarding competition within the rapidly advancing artificial intelligence industry. Boasting over 800 million weekly users and a recent secondary share sale boosting its value to $500 billion, OpenAI now ranks among the world’s most valuable startups. This interaction with EU officials indicates a growing recognition of potential market distortions, particularly as major tech companies extend their presence in AI. These conversations coincide with regulatory scrutiny of the impact of established platforms on emerging technologies.
OpenAI confirmed that its recent discussions with EU officials align with its publicly stated stance on fair market practices. In a meeting with EU antitrust chief Teresa Ribera on September 24, the company highlighted the obstacles it faces when competing against entrenched tech giants. Meeting notes referenced by Bloomberg News revealed that OpenAI also urged regulators to address the risk of large platforms trapping users within their ecosystems. These efforts reflect OpenAI’s belief that intervention may be required to uphold fair competition in the AI sector.
Meanwhile, OpenAI’s Sora video-generation tool has quickly surpassed 1 million downloads within just five days of its late-September launch, as announced by Bill Peebles, the head of Sora at the AI firm. Peebles confirmed this milestone in a post on X, noting that Sora achieved this milestone even faster than ChatGPT, OpenAI’s renowned AI chatbot, which currently boasts over 800 million weekly active users.
The surge in popularity occurred shortly after Sora 2, the short-video version of the app, surged to the top of Apple’s App Store charts on October 3, a mere three days after its release. Impressively, the app achieved this feat despite its invite-only status and current availability limited to users in the United States and Canada.
OpenAI’s recent engagement with EU authorities echoes its public statements on competition in the AI industry, particularly in light of antitrust investigations involving Google’s parent company, Alphabet. The company emphasized that its arguments to EU officials align with its ongoing advocacy for fair competition, especially amid intensified antitrust probes targeting companies like Google. This consistency in messaging underscores OpenAI’s commitment to transparency regarding its competitive concerns.
The direct appeal to EU regulators by OpenAI sheds light on the challenges faced by newer AI firms when established entities benefit from significant market advantages and established user bases. This context suggests that OpenAI seeks not only acknowledgment but active oversight from EU regulatory bodies.
OpenAI’s requests to the European Commission included specific calls to prevent dominant platforms from engaging in practices that could hinder user mobility or lock-in. It urged regulators to curb large platforms from locking in users to enhance competition and consumer choice in the AI sector.
In addition to these appeals, OpenAI noted that the European Commission is investigating how large, vertically integrated platforms may be extending their dominance into the AI domain. The Commission is scrutinizing how these platforms leverage their existing market positions to integrate AI, including examining specific intercompany agreements. This ongoing regulatory scrutiny indicates an awareness of the complexities arising from the overlap of traditional tech dominance and new AI capabilities.
Despite escalating discussions, both the European Commission and Google have yet to respond to media inquiries regarding the concerns raised. This silence raises questions about how regulators and major platforms will address the issues raised by OpenAI as AI continues to integrate into the digital economy. The current focus centers on managing competition in an industry shaped by innovation and the influence of established players.
OpenAI’s rapid growth, with a user base exceeding 800 million weekly and a $500 billion valuation post its recent secondary share sale, underscores its significant role in shaping regulatory frameworks. The company’s proactive engagement with EU authorities not only reflects its aspirations but also contributes to broader discussions about fairness and competition in the global AI market.