Big tech firms under scrutiny in the US: Are they 'deliberately' inflating costs?
Lina Khan, the youngest chair of the Federal Trade Commission (FTC), had drawn attention to the threats posed by major tech firms to the US last year. Khan, who was critical of the artificial intelligence industry, was removed from her post when Donald Trump took office on January 20. A new low-cost model from a Chinese artificial intelligence company has brought Khan's ideas back to the agenda.
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Serving as FTC Chair between 2021 and 2025, Lina Khan argued that major technology, pharmaceutical, and food companies needed to be brought under control. Taking the helm of the FTC at age 31, Khan filed lawsuits against numerous major corporations on behalf of the US during her four-year tenure. In almost all of the cases Khan brought, the companies were sentenced to penalties such as compensation. The R1 artificial intelligence model, developed by the Chinese AI company DeepSeek at a cost of 5.5 million dollars, has once again brought Lina Khan's theses regarding the technology industry to the forefront.
Last week, US President Donald Trump had pledged 500 billion dollars in investment for the artificial intelligence industry. Following Trump's announcement, the R1 artificial intelligence engine developed in China became a major topic in the world press.
R1 emerged as an artificial intelligence model equivalent to the multi-billion dollar ChatGPT with a budget of 5.5 million dollars. Following this development, Americans began to question the budgets spent on the artificial intelligence industry.
Former FTC Chair Khan argued that technology firms such as TicketMaster, Nvidia, Meta, Microsoft, Apple, and Amazon could destabilize the US economy. According to Khan, technology firms were deliberately inflating their costs, causing expenditures on technology investments in the US to rise.
Former FTC Chair Lina Khan
HAD WARNED ABOUT THE ARTIFICIAL INTELLIGENCE INDUSTRY
Khan was also skeptical of the artificial intelligence industry. Demanding that artificial intelligence be regulated, Khan claimed that the industry, which she believed posed social and political risks, was growing unchecked.
With the revelation of the costs of R1 and ChatGPT in the US, Khan's ideas have become a subject of debate once again. Democratic members of Congress and some artificial intelligence experts have called on the judiciary to take action, citing Khan's statements.
In contrast, the Trump administration has promised to reduce regulations rather than increase them. According to Trump, the artificial intelligence industry needs to be supported by the state. The US President describes this support as 'extremely important' for the country's future.
US billionaire Elon Musk had frequently targeted Khan in his social media posts. The FTC under Khan's leadership had also filed various lawsuits against Musk's companies