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21 - Oligopolies

from Part IV - Societal Implications

Published online by Cambridge University Press:  24 July 2026

David Atkinson
Affiliation:
University of Texas, Austin
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Summary

This chapter challenges the popular narrative that open-source software will democratize generative AI (GenAI) and disrupt the existing oligopoly dominated by companies like Google, Microsoft, Meta, and OpenAI. It argues that Big Tech routinely “weaponizes” open-source projects (e.g., Linux, Android, PyTorch) as a strategic tool to gain a competitive advantage over rivals, not for true democratization. The analysis shows that despite impressive percentage growth from startups, the absolute market value gains of tech giants have dwarfed those of new entrants. The enduring concentration of power stems from eight key levers favoring Big Tech: vast capital, exclusive proprietary datasets, massive access to compute (GPUs), network effects, control over top talent, market access agreements, a high-interest investment environment, and a lack of a viable business model to unseat their integrated ecosystems. Ultimately, the chapter concludes that open source in GenAI acts as a “fig leaf” for corporate dominance, as these massive companies control nearly every link in the GenAI supply chain – making radical openness unlikely to have a meaningful impact on the existing power structure.

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  • Oligopolies
  • David Atkinson, University of Texas, Austin
  • Book: Our Artificial Future
  • Online publication: 24 July 2026
  • Chapter DOI: https://doi.org/10.1017/9781009719605.026
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  • Oligopolies
  • David Atkinson, University of Texas, Austin
  • Book: Our Artificial Future
  • Online publication: 24 July 2026
  • Chapter DOI: https://doi.org/10.1017/9781009719605.026
Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • Oligopolies
  • David Atkinson, University of Texas, Austin
  • Book: Our Artificial Future
  • Online publication: 24 July 2026
  • Chapter DOI: https://doi.org/10.1017/9781009719605.026
Available formats
×