[nostromo]

Running AI at a loss long enough to kill the competition would run afoul of antitrust laws. Even more so since they’re bundling their AI products with their search monopoly.

Although I doubt this will stop them if they think it’s advantageous…

[akozak]

Lower real operating costs isn't the same thing as below cost pricing.

US law here is nuanced. Good quick primer https://www.ftc.gov/advice-guidance/competition-guidance/gui...

[Bewelge]

I thought that these type of antitrust laws are in no way enforced anymore in the tech industry. And that it's been that way for decades. I mean the sheer existence of Google shows that right? What about Maps, Mail, Books... basically everything apart from Search? Why would an AI Mode as one category of Search results be any different? They're not actively promoting Gemini in those search results. They're simply augmenting it with this new tool that exists now.

[er2d]

Yes anti-trust is very much theatre nowadays.

As long it further's American interests globally - monopoly is fine. Other countries need to take notice and start picking winners nationally in order to compete with the large American big tech firms.

[Bewelge]

Eh, I think this is actually not a specifically American thing. More of a neo-liberal mindset. Competition may be good in the long term. But a monopoly now may mean more money in your pocket now. The tech giants definitely give the US some geo-political power in some cases but in general the US would be better off with more competition.

ed: @er2d, can't reply to your comment for some reason, so doing it here: I don't agree. In theory a monopoly decreases the necessity for R&D. Of course this becomes more complex if the R&D is funded or steered by the state. But look at the current state of LLMs. There is fierce competition between 3 US companies. But geopolitically it's the same as if there would be one monopoly. The US being the clear technological leader in an industry is not dependent on that industry being a domestic monopoly.

And for the Europe comment: Also don't agree. Look at Boeing & Airbus. Both are companies where the US & EU have decided that they need to ensure the existence of a domestic airplane manufacturer. So in these cases they support these companies (often in violation of international trade laws). But it has nothing to do with monopolies. If a state decides to support a company to ensure its existence, a monopoly is the logical consequence and not the aim. Because if that industry would be profitable it wouldn't need to be supported in the first place.

But all these tech companies are not in industries that would move off-shore or stop existing because they're not profitable enough, so it's an entirely different setting.

[er2d]

Nope the reason for a monopoly is incentives for R&D and innovation.

The US understands that and allows it to happen as the former yields a compounding effect of power.

European states certainly don't get this.

[eueew]

You’re wrong actually I suggest you read a book on industrial organisation and why monopoly is a more efficient market structure in relation to incentives for R&D.

Why do people comment on stuff they barely have an understanding of? Comical. People like you create noise.

[SJC_Hacker]

TSMC ?

Airbus ?

[er2d]

Are you claiming they are tech firms in the manner of a Apple, Google etc?

lol

[klabb3]

> run afoul of antitrust laws

Now, that’s a name I haven’t heard in a long time.

[randito]

> antitrust laws. Even more so since they’re bundling their AI products with their search monopoly.

couldn't this just be framed / spun as just using search data as training? i don't seem being bundled enough to run afoul with anti-trust.

[Sohcahtoa82]

> Running AI at a loss long enough to kill the competition would run afoul of antitrust laws.

Running at a loss long enough to kill the competition is basically the name of the game these days.

When Uber started, they were basically setting VC money on fire by selling rides at a loss to destroy the taxi market.

[nyc_data_geek1]

Who's going to enforce antitrust laws in this environment, pray tell?

[pixl97]

>would run afoul of antitrust laws

Buwahahahahahahahhahah

They drop a little cash on some shitcoin the president controls and those problems go away.