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AI Reports · GovAI (Oxford) · 2026-10-17 · Research paper

Economics of AI Market Concentration Implications of Foundation Models September 2023 Working Paper Jai Vipra and Anton Korinek This Brookings Working Paper analyzes the structure of the market for fo

This Brookings Working Paper analyzes the market structure for foundation models and examines its implications for competition policy and regulation. It argues that the most capable models will tend toward natural monopoly and may have vast markets. It calls for antitrust authorities to keep the market contestable and for regulators to require the most capable models to meet quality standards, including safety, privacy, and reliability.

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