Promoting AI Innovation Through Competition: A Guide to Managing Market Power

This report argues that a competitive AI market is essential to sustaining U.S. innovation and national security. Without intervention, the AI sector may consolidate around a few dominant tech firms who control key infrastructure, data, and distribution—creating a fragile “digital monoculture.” To prevent this, the report recommends policies that increase competition among compute providers, level the playing field for model and application development, and ensure open distribution platforms. A more diverse, contestable AI ecosystem would boost resilience, innovation, and long-term global competitiveness.