Japan’s Fair Trade Commission announced Wednesday an investigation into the generative AI sector amid increasing concerns over the dominance of global firms like Nvidia and Google, particularly in the semiconductor market.

The increasing role of generative AI has prompted the commission to examine potential antitrust risks.

The organization is seeking public input until 22 November, and plans to produce its first report next spring.

It warned that limited access to essential resources, such as high-speed semiconductors, may hinder new competitors from entering the generative AI sector.

The commission identified several key risks associated with the expansion of large IT firms in the AI sector: the potential monopolization of specialized personnel, self-preferencing of their products, and the use of financial power to suppress competition.

Companies like Nvidia control approximately 80% of the global market share for semiconductors utilized in generative AI applications.

The global urgency for regulatory scrutiny has intensified, with other countries, including the United States and European Union nations, enhancing their investigations into generative AI trends.