Ocasio-Cortez Calls for Examination of Big Tech Companies

Representative Alexandria Ocasio-Cortez (D-N.Y.) has expressed that Congress should explore breaking up major corporations like Apple. This comes in light of reports that the tech giant might need to increase prices for its cell phones and laptops due to supply chain issues affecting chip production.

“We really need to dismantle many of the oversized companies and establish better consumer protections,” Ocasio-Cortez stated.

Her comments reflect a growing concern among lawmakers about the implications of the AI race, as companies face mounting pressure from global demand and communities wrestle with the associated costs.

Similar to many other progressives, Ocasio-Cortez advocates for a stronger governmental role, citing a lack of trust in the influence wielded by corporations.

“The crux of the matter is that these large corporations often see themselves as the government. They aspire to have complete, unchecked power,” she added.

Recently, Apple’s outgoing CEO Tim Cook hinted that the company may have to pass some of the escalating costs onto consumers.

“Regrettably, higher prices are unavoidable,” Cook remarked in a conversation with The Wall Street Journal.

“While we are striving to alleviate the impact of these significant price hikes and protect our customers, the situation has become untenable,” he noted.

For years, companies like Apple have maintained a stronghold over the processing chip market—integral components that serve as the core of devices.

These chips require complex manufacturing processes and enable computers to carry out calculations, handle data, and execute various commands.

With AI firms now driving up demand, Apple finds itself vying for a limited supply of processors, leading to increased costs.

Beyond discussing the dynamics between government and business, Ocasio-Cortez believes it’s crucial for Congress to rethink strategies to manage the rising costs associated with AI competition at the local level.

She specifically emphasizes the importance of addressing energy consumption related to data centers.

When asked if Congress should explore measures beyond President Joe Biden’s pivotal technology investment legislation, the Semiconductor Manufacturing Incentives (CHIPS) Act of 2022, Ocasio-Cortez affirmed that it should.

“The CHIPS Act was enacted before the recent significant developments in AI. It was actually passed long before data centers emerged, and it wasn’t tailored to account for the enormous demand they create,” she explained.

The CHIPS Act includes $11.2 billion for modernizing the energy grid, establishes a Clean Energy Innovation Program, and allocates $39 billion for domestic semiconductor production incentives.

However, it did not tackle the energy consumption challenges posed by data centers.

“In a way, we are subsidizing a lot of these AI data centers,” Ocasio-Cortez remarked.