The Rise of AI Power Consolidation: Lessons from the Dot-Com Era
Byron V. Acohido draws parallels between the dot-com bubble burst and the current generative AI boom. The catastrophic merger of AOL and Time Warner in 2000 serves as a cautionary tale, illustrating how excitement can overshadow due diligence. Fast forward to November 3, 2025, as OpenAI inks a substantial $38 billion deal with Amazon Web Services, solidifying its status in AI infrastructure. Unlike the chaotic web landscape of the late ’90s, today’s tech giants—Microsoft, Amazon, and others—are not just participants but dominant players reengineering the AI landscape to lock in control.
This consolidation not only mirrors past trends but raises concerns over job losses and ethical oversight as giants like Microsoft and Amazon streamline their workforce amid an AI boom. Regulatory frameworks lag behind, risking the entrenchment of centralized power. As Acohido observes, the landscape has shifted from innovation to gatekeeping, warning of the consequences for both the market and consumer autonomy.