Some competition authorities and policymakers, such as the European Commission and the UK’s Competition and Markets Authority (CMA)5, have raised concerns about competitive dynamics in the provision of compute for Gen AI. In particular, there is a concern that a large share of compute capacity is concentrated in the hands of a few vertically integrated providers, potentially limiting access for third parties and hindering Gen AI adoption. To date, concerns have been framed as forward-looking risks that warrant continued monitoring as the market develops.
Against this backdrop, Amazon Web Services (AWS) has commissioned Copenhagen Economics to examine, based on available evidence, (i) whether providers of compute for Gen AI operate in a competitive environment and (ii) how expected developments in the sector may affect competition going forward.
In this report, we provide a preliminary assessment based on publicly available information. We assess whether market outcomes, such as trends relating to market entry, growth, investment, and pricing, are broadly consistent with a well-functioning market. Although available evidence is not granular enough to capture potential differences across workloads or buyer types, it is sufficient to support a high-level assessment. The research underlying this report was carried out between April and June 2025. Given the fast-moving nature of this market, subsequent developments may not be fully reflected.
This report was commissioned by Amazon Web Services.
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