Tech execs have voiced concern that the development of artificial intelligence is concentrated in the hands of too few companies, potentially giving them excessive control over the rapidly evolving technology.
An explosion of interest in AI was sparked by OpenAI’s ChatGPT late last year thanks to the novel way in which the chatbot can answer user prompts.
Its popularity contributed to the start of what many in the tech industry have called an AI arms race, as tech giants including Microsoft and Google seek to develop and launch their own artificial intelligence models. These require huge amounts of computing power as they are trained on massive amounts of data.
“Right now, there are only a handful of companies with the resources needed to create these large-scale AI models and deploy them at scale. And we need to recognize that this is giving them inordinate power over our lives and institutions,” Meredith Whittaker, president of encrypted messaging app Signal, told CNBC in an interview last week.
“We should really be concerned about, again, a handful of corporations driven by profit and shareholder returns making such socially consequential decisions.”
Whittaker previously spent 13 years at Google but became disillusioned in 2017 when she found out the search giant was working on a controversial contract with the Department of Defense known as Project Maven. Whittaker grew concerned Google’s AI could potentially be used for drone warfare and helped organize a walkout at the company that involved thousands of employees.
“AI, as we understand it today, is fundamentally a technology that is derivative of centralized corporate power and control,” Whittaker said.
“It is built on the concentrated resources that accrued to a handful of large tech corporations, largely based in the U.S. and China via the surveillance advertising business model, which gave them powerful computational infrastructure and huge amounts of data; large markets from which to pull that data; and the ability to process and structure that data in ways useful for creating new technologies.”
Whittaker is not alone in this view.
Frank McCourt, the former owner of the Los Angeles Dodgers baseball team, now runs Project Liberty, an organization looking to motivate technologists and policymakers “to build a more responsible approach to technology development,” according to its website.
McCourt also thinks AI could give too much power to tech giants. He said there are “basically five companies that have all the data,” although he didn’t name the firms.
“Large language models require massive amounts of data. If we don’t make changes here, the game is over … Only these same platforms will prevail. And they’ll be the beneficiaries,” McCourt told CNBC in an interview last week.
“Sure, people will come and build small things on those big platforms. But it’s the big underlying platforms that control this data that will be the winners.”
Whittaker and McCourt are among those who feel users have lost control of their data online and that it is being harnessed by technology giants to feed their profits.
“Big tech and social media giants are inflicting profound damage on our society,” says McCourt’s Project Liberty manifesto says. And he believes AI could make this worse.
“Let’s not be fooled, generative AI is a fancy name for a more powerful usage of our data,” McCourt said in his CNBC interview.
Generative AI is the technology that describes applications like ChatGPT. The models underpinning these apps are trained on vast amounts of data.
“Generative AI built with large language models are basically enhanced, or more powerful versions, of the technology we have now, given a fancy name. It is centralized, autocratic surveillance technology. And that, I’m against. And I think it’s doing a lot of harm in the world right now,” McCourt said.
For Jimmy Wales, the founder of Wikipedia, it is the state of social media that is of particular concern right now.
On AI, however, he feels that while the technology giants now are leading the way, there is space for disruption.
In an interview with CNBC last week, Wales pointed to a leaked Google memo this year in which a researcher at the U.S. tech giant said the company has “no moat” in the AI industry, referring to a threat from open-source models. These are AI models that are not owned by a single entity, such as Google or Microsoft, and instead can be developed and added to by anyone. These could potentially see the creation of competing AI applications without the massive amount of resources it currently takes.
“The models that are out there, and open source models that anybody can download and run on a few machines that a startup can spend [just] $50,000 training … that’s not a big deal at all. It’s really impressive,” Wales added.
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People stand in front of an Apple store in Beijing, China, on April 9, 2025.
Tingshu Wang | Reuters
Apple iPhone sales in China rose in the second quarter of the year for the first time in two years, Counterpoint Research said, as the tech giant looks to turnaround its business in one of its most critical markets.
Sales of iPhones in China jumped 8% year-on-year in the three months to the end of June, according to Counterpoint Research. It’s the first time Apple has recorded growth in China since the second quarter of 2023.
Apple’s performance was boosted by promotions in May as Chinese e-commerce firms discounted Apple’s iPhone 16 models, its latest devices, Counterpoint said. The tech giant also increased trade-in prices for some iPhone.
“Apple’s adjustment of iPhone prices in May was well timed and well received, coming a week ahead of the 618 shopping festival,” Ethan Qi, associate director at Counterpoint said in a press release. The 618 shopping festival happens in China every June and e-commerce retailers offer heavy discounts.
Apple’s return to growth in China will be welcomed by investors who have seen the company’s stock fall around 15% this year as it faces a number of headwinds.
Since then, Huawei has aggressively launched devices in China and has even begun dipping its toe back into international markets. The Chinese tech giant has found success eating away at some of Apple’s market share in China.
Huawei’s sales rose 12% year-on-year in the second-quarter, according to Counterpoint. The firm was the biggest player in China by market share in the second quarter, followed by Vivo and then Apple in third place.
“Huawei is still riding high on core user loyalty as they replace their old phones for new Huawei releases,” Counterpoint Senior Analyst Ivan Lam said.
Chinese tech giant Baidu has bolstered its core search platform with artificial intelligence in the biggest overhaul of the product in 10 years.
Analysts told CNBC the move was a bid to keep ahead of fast-moving rivals like DeepSeek, rather than traditional search players.
“There has been some small pressure on the search business but the focus on AI and Ernie Bot is a key move ahead,” Dan Ives, global head of tech research at Wedbush Securities, told CNBC by email. Ernie Bot is Baidu’s AI chatbot.
“Baidu is not waiting around to watch the paint dry, full steam ahead on AI,” he added.
Baidu AI overhaul
Baidu is China’s biggest search engine, but — as is also being seen by Google — the search market is being disrupted.
Users are flocking instead to AI services such as ChatGPT or DeepSeek, which shocked the world this year with its advanced model it claimed was created at a fraction of the cost of rivals.
But Kai Wang, Asia equity market strategist at Morningstar, also noted that short video platforms such as Douyin and Kuaishou are also getting into AI search and piling pressure on Baidu.
To counter this, Baidu made some major changes to its core search product:
Users can now enter more than a thousand characters in the search box, versus 28 previously;
Questions can be asked in a more direct and conversational manner, mirroring how people now use chatbots;
Users can ask questions through voice but also prompt the seach engine with pictures and files;
Baidu has integrated its AI chatbot features, which enable users to generate photos, text and videos, into the product.
“This is more aligned with how people use ChatGPT and DeepSeek in terms of how they look for answers,” Wang said.
Outside of China, Google has also been looking to enhance its core search product with AI, highlighting how search has been under pressure from the burgeoning technology.
Baidu on the offense
Baidu was one of China’s first movers when it came to AI, releasing its first models and ChatGPT-style product Ernie Bot to the public in 2023. Since then, it has aggressively launched updated AI models.
However, the Beijing-headquartered company has also faced intense competition from fellow tech giants like Alibaba and Tencent, as well as upstarts such as DeepSeek.
These companies have also been launching new models and infusing AI into their products and Baidu’s stock has fallen behind as a result. Baidu shares have risen around 2.5% this year, versus a 30.5% surge for Alibaba and a 20% rise for Tencent.
“This is a defensive and offensive move … Baidu needs to be aggressive and perception-wise show they are not the little brother to Tencent on the AI front,” Wedbush Securities’ Ives added.