A.I.’s Sputnik Moment: A Canary in the Coal Mine
When the Chinese artificial intelligence firm DeepSeek shocked Silicon Valley and Wall Street with its powerful new A.I. model, Marc Andreessen, the Silicon Valley investor, went so far as to describe it as “A.I.’s Sputnik moment.” Presumably, Mr. Andreessen wasn’t calling on the federal government to start a massive new program like NASA, which was our response to the Soviet Union’s Sputnik satellite launch; he wants the U.S. government to flood private industry with capital, to ensure that America remains technologically and economically dominant.
A Different Metaphor
As an antitrust enforcer, I see a different metaphor. DeepSeek is the canary in the coal mine. It’s warning us that when there isn’t enough competition, our tech industry grows vulnerable to its Chinese rivals, threatening U.S. geopolitical power in the 21st century.
The Dominant Technology Firms’ Argument
Although it’s unclear precisely how much more efficient DeepSeek’s models are than, say, ChatGPT, its innovations are real and undermine a core argument that America’s dominant technology firms have been pushing — namely, that they are developing the best artificial intelligence technology the world has to offer, and that technological advances can be achieved only with enormous investment — in computing power, energy generation and cutting-edge chips. For years now, these companies have been arguing that the government must protect them from competition to ensure that America stays ahead.
America’s Tech Giants: Awash in Cash and Resources
But let’s not forget that America’s tech giants are awash in cash, computing power and data capacity. They are headquartered in the world’s strongest economy and enjoy the advantages conferred by the rule of law and a free enterprise system. And yet, despite all those advantages — as well as a U.S. government ban on the sales of cutting-edge chips and chip-making equipment to Chinese firms — America’s tech giants have seemingly been challenged on the cheap.
A History of Anticompetitive Behavior
It should be no surprise that our big tech firms are at risk of being surpassed in A.I. innovation by foreign competitors. After companies like Google, Apple and Amazon helped transform the American economy in the 2000s, they maintained their dominance primarily through buying out rivals and building anticompetitive moats around their businesses.
Conclusion
The recent history of artificial intelligence demonstrates that monopolies may offer periodic advances, but breakthrough innovations have historically come from disruptive outsiders, in part because huge behemoths rarely want to advance technologies that could displace or cannibalize their own businesses. Mired in red tape and bureaucratic inertia, those companies usually aren’t set up to deliver the seismic efficiencies that hungry start-ups can generate.
FAQs
Q: What is the significance of DeepSeek’s A.I. model?
A: DeepSeek’s A.I. model is a powerful innovation that has shocked Silicon Valley and Wall Street, and is a warning that the lack of competition in the tech industry makes it vulnerable to foreign rivals.
Q: Why are America’s tech giants at risk of being surpassed in A.I. innovation?
A: America’s tech giants are at risk of being surpassed in A.I. innovation because they have a history of anticompetitive behavior, including buying out rivals and building anticompetitive moats around their businesses.
Q: What is the best way for the United States to stay ahead globally?
A: The best way for the United States to stay ahead globally is by promoting competition at home, rather than relying on government protectionism or monopolies.
