The U.K.’s Competition and Markets Authority (CMA) is investigating Google parent Alphabet’s partnership with artificial intelligence startup Anthropic to determine if it constitutes a “relevant merger situation.”
This investigation, part of a broader scrutiny of big tech’s influence on the AI sector, examines whether the partnership may lead to a significant reduction in competition within the U.K. market. The CMA’s preliminary investigation invites comments over the next two weeks before potentially launching a full investigation.
Anthropic, known for developing the Claude large language model (LLM) and chatbot, received a $2 billion investment from Google in 2023. This investment came shortly after Google signed a cloud computing agreement with Anthropic.
The CMA is now assessing whether this arrangement could be classified as a merger, which would allow the agency to conduct a more detailed investigation. The focus is on whether such partnerships could potentially stifle competition by consolidating market power in the hands of a few large tech companies.
Other Tech Giants Under Scrutiny
This investigation into Google and Anthropic is not isolated. The CMA is also examining other significant partnerships in the AI sector, including:
- Amazon’s $4 billion stake in Anthropic, along with a cloud computing agreement with the startup.
- Microsoft’s substantial investment in OpenAI, the maker of ChatGPT, and its partnership with AI startup Inflection. This includes Microsoft’s hiring of key personnel from Inflection.
- The CMA previously dropped an investigation in May into a partnership between Microsoft and French AI startup Mistral.
These investigations reflect a growing concern among regulators about the concentration of power in the tech industry, particularly in emerging and competitive sectors like artificial intelligence. The CMA is vigilant in monitoring arrangements that may not involve outright acquisitions but could still impact competition through other means, such as strategic partnerships or investments.
Anthropic has reiterated its stance on independence, with a spokesperson stating that the company’s strategic partnerships and investor relationships do not affect its corporate governance or limit its ability to collaborate with other partners. They emphasized that, unlike other AI firms, Google and Amazon do not hold seats or observer rights on Anthropic’s board, maintaining the company’s operational independence.
Google has also addressed the investigation, with a spokesperson reaffirming the company’s commitment to fostering an open and innovative AI ecosystem. They highlighted that Anthropic is free to use multiple cloud providers and does so, without any exclusivity demands from Google. This openness is part of Google’s broader strategy to support diverse and collaborative AI development environments.
Featured Image courtesy of PATRICIA DE MELO MOREIRA/AFP via Getty Images
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