The United Kingdom’s Competition and Markets Authority (CMA) has officially launched a formal antitrust investigation into Amazon’s $4 billion investment in Anthropic, an AI startup known for developing large language models (LLMs) and the chatbot Claude, which rivals popular AI tools like OpenAI’s ChatGPT and Google’s Bard.
This move by the CMA comes shortly after the regulator opened a similar inquiry into Google’s investments in Anthropic, which includes an initial $300 million stake followed by a subsequent $2 billion infusion. These actions are part of the CMA’s broader scrutiny of Big Tech’s strategic investments in emerging AI companies, which some critics describe as a “quasi-merger” tactic. This approach allows tech giants to gain significant influence over innovative startups without triggering the regulatory alarms that a full acquisition would.
Founded in 2021, San Francisco-based Anthropic has quickly risen to prominence, securing $10 billion in funding over just three years. The company, which operates as a public benefit corporation (PBC), emphasizes its commitment to responsible AI development. Despite Amazon’s substantial investment, Anthropic maintains that it remains an independent entity, with no Amazon representation on its board.
The CMA’s investigation into Amazon’s ties with Anthropic is part of a broader trend of regulatory scrutiny on Big Tech’s involvement in the AI sector. The regulator is already preparing to launch a full-scale probe into Microsoft’s partnership with OpenAI, highlighting concerns over how these investments might stifle competition and innovation. The CMA is particularly focused on the possibility that such investments could lead to dominant companies exerting undue control over AI startups, potentially limiting market competition and consumer choice.
Anthropic has responded to the CMA’s investigation by asserting that its partnerships, including the one with Amazon, do not compromise its independence or ability to collaborate with other companies. “We are an independent company,” an Anthropic spokesperson emphasized, noting that Amazon holds no board seats or observer rights within the company.
The CMA now has 40 working days to decide whether Amazon’s investment in Anthropic constitutes a merger under UK regulations and whether it poses a risk to competition within the market. Depending on the findings, the regulator could either approve the deal or escalate it to a more detailed phase 2 investigation, with a decision expected by early October.
This investigation marks another significant chapter in the ongoing debate over Big Tech’s influence in the rapidly evolving AI industry and the broader implications for market competition and innovation.
