UK Regulators Probe Google's Investment in AI Startup Anthropic for Antitrust Concerns

July 31, 2024
UK Regulators Probe Google's Investment in AI Startup Anthropic for Antitrust Concerns
  • The U.K.'s Competition and Markets Authority (CMA) has initiated a probe into Google's investment in Anthropic, an AI startup, to evaluate potential antitrust concerns.

  • As part of this investigation, the CMA is inviting interested parties to submit comments until August 13, 2024.

  • The authority is specifically assessing whether the partnership constitutes a 'relevant merger situation' that would necessitate a formal investigation.

  • This scrutiny follows the AI boom triggered by the release of ChatGPT by Microsoft-backed OpenAI over 18 months ago.

  • Anthropic, founded in 2021 by former OpenAI employees, focuses on developing safe and reliable AI models and operates as a public benefit corporation.

  • A Google spokesperson reiterated the company's commitment to an open AI ecosystem, clarifying that Anthropic is not restricted to exclusive tech rights and can utilize multiple cloud services.

  • Both Amazon and Alphabet are significant investors in Anthropic, while Microsoft remains the largest investor in OpenAI.

  • The CMA has expressed concerns about the concentration of power among major tech firms in the AI sector, citing an 'interconnected web' of over 90 partnerships and investments.

  • An Anthropic spokesperson emphasized the company's independence and commitment to its public benefit mission, asserting that their partnership with Google does not equate to a merger.

  • As of now, neither Google nor Anthropic has publicly commented on the ongoing inquiry.

  • The CMA's review, which commenced on July 30, aims to determine if the partnership has led to a substantial lessening of competition in the U.K. AI services market.

Summary based on 13 sources


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