UK regulators launch probe into Amazon's $4 billion AI investment in Anthropic
The UK’s Competition and Markets Authority (CMA) has announced a preliminary investigation into Amazon’s $4 billion (£3.16 billion) investment in the US artificial intelligence startup Anthropic. This move marks the latest in a series of investigations by the UK regulator into major technology partnerships, as it looks to curb anti-competitive practices in the AI industry.
Amazon's investment, announced in March, includes a commitment from Anthropic to utilize Amazon Web Services (AWS) as its primary cloud provider for essential operations, including safety research and the development of future AI foundation models. The CMA is examining whether this partnership has led to the creation of a "relevant merger situation" that could impact competition within the market.
Anthropic, which specializes in developing advanced AI systems, emphasized its independence in response to the CMA’s announcement. A spokesperson for the company stated, “We are an independent company. Our strategic partnerships and investor relationships do not diminish our corporate governance independence or our freedom to partner with others. Amazon does not have a seat on Anthropic’s board, nor does it have any board observer rights. We intend to cooperate with the CMA and provide them with a comprehensive understanding of Amazon’s investment and our commercial collaboration.”
Amazon, on the other hand, expressed disappointment over the CMA’s decision to continue its probe. A spokesperson for the tech giant commented, “We’re disappointed that the UK’s CMA has not ended its probe yet. Amazon’s collaboration with Anthropic does not raise any competition concerns or meet the CMA’s own threshold for review. The early days of generative AI have largely seen one successful option available for customers. Anthropic has worked hard to become an emerging viable alternative. But, building models is expensive, and companies like Anthropic need access to a substantial amount of capital to train these models.”
Amazon further argued that its investment would foster competition in the AI sector, emphasizing that Anthropic is free to collaborate with other providers and already has multiple partners.
Last week, the regulator launched a similar inquiry into Google’s partnership with Anthropic and it’s also investigating Microsoft's collaborations with AI lab Inflection and OpenAI. The CMA was also investigating Microsoft’s deal with the French AI startup Mistral, but the case was dropped in May.
