Congress is grappling with the increasing costs of the AI race, with lawmakers weighing in on the role of big tech companies like Apple. Rep. Alexandria Ocasio-Cortez stated that she believes Congress should consider breaking up companies that have become too powerful, citing the need for consumer protections.
Ocasio-Cortez's comments come as Apple's outgoing CEO, Tim Cook, signaled that the company may need to pass on increased costs to consumers due to a strained processing chip supply chain. The company's costs are rising as it competes with AI companies for a dwindling supply of processors, driving up the price of its products.
The processing chip market has been dominated by companies like Apple, which require highly sophisticated production to create these chips. These chips allow computers to perform calculations, process data, and execute commands. However, the increasing demand from AI companies has put a strain on the supply chain, leading to higher costs.
Ocasio-Cortez believes that Congress should revisit ways to mitigate the costs of the AI race, particularly on a local level. She pointed to the energy strain caused by data centers, which are sucking up a huge amount of supply and driving up costs. The Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act, passed in 2022, did not address this issue.
The CHIPS Act included $11.2 billion to modernize the country's energy grid, created clean energy innovation programs, and provided $39 billion in domestic semiconductor production incentives. However, Ocasio-Cortez believes that more needs to be done to address the energy consumption strain caused by data centers.
Ocasio-Cortez stated that she believes it's time for Congress to re-examine the relationship between the government and big business, citing the influence of corporate power. She believes that lawmakers should be working to protect consumers and address the costs of the AI race, rather than allowing companies to pass on their costs to consumers.
