Big Tech and AI: Centralization and American Monopoly

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Key Takeaways

1The Trump administration centralized American technology, reinforcing the dominance of hyperscalers in AI.

2Recent financial results from Big Tech show an increased concentration of technological power in the United States.

3The demand for computing for AI exceeds capacity, driving a massive expansion of data centers.

💡Why it matters — This centralization could limit diversity and innovation, concentrating power among a few tech giants.

Technological Centralization and Big Tech

In recent years, the term "AI supremacy" has been used to describe the technological competition between the United States and China. However, recent developments show that American hyperscalers, these digital giants, have become the true holders of AI. They dominate the market due to their control over cloud computing and digital advertising revenues, directly benefiting from the growing demand for compute.

Financial Results and Power Concentration

The Big Tech earnings festival took place this week, with four of the seven tech giants having released their results after the market closed yesterday. These results illustrate an unprecedented concentration of power. Since the emergence of ChatGPT at the end of 2022, this trend has intensified, shaping a new landscape of technological dominance. AI is no longer confined to Silicon Valley; it is now influencing the direction the United States is taking on the global stage.

The Impact of Generative AI on Investments

Four years after these initial developments, investments in AI continue to grow at a steady pace. For example, Meta recently revised its investment forecasts upward. The revenue growth from cloud computing is also experiencing significant acceleration. Additionally, AI is enhancing the efficiency of digital advertising, as demonstrated by the performances of Meta and Amazon. However, the demand for compute now exceeds existing capacity, creating pressure for infrastructure expansion.

Big Tech and Control of AI Infrastructure

The technology giants, through their massive investments in AI infrastructure, dictate the pace of its development. They also hold significant stakes in companies like Anthropic and OpenAI, as well as in other promising AI startups. These companies are poised to become major players on the global AI stage, further reinforcing the concentration of power.

The Rise of Data Centers and Chip Manufacturers

The growing demand for AI data center clusters is driving the creation of ever-larger infrastructures. Manufacturers of GPUs and ASICs, such as Nvidia, Broadcom, TSMC, and Google with its TPUs, are gaining influence in the 2020s. The spectacular increase in the semiconductor sector ETF (Philadelphia Semiconductor Sector ETF) reflects this boom, largely supported by U.S. incentives. The ticker SOX recorded an increase of about 50% over the first four months of 2026, a historic record.

A Future of AI Under Restricted Control

Ultimately, only a few large tech companies hold the reins of AI's future. The impact of data centers on GDP is concentrated in a few companies, highlighting the centralization of economic power. This concentration of power raises questions about diversity and innovation in the sector, as control remains in the hands of a few key players.