Google’s partnership with Anthropic under review by UK regulators

The Competition and Markets Authority has initiated a preliminary inquiry into Google’s collaboration with AI startup Anthropic, marking the latest in a series of probes into agreements between major tech companies and smaller AI enterprises.

Google has injected $2 billion (approximately £1.56 billion) into the firm by 2023, following a recent cloud-computing deal with Clode LLM and chatbot startup Anthropic.

The CMA is currently assessing whether the partnership may have led to “merger-related situations” that warrant a formal investigation. Public feedback is welcomed over the next fortnight.

This move comes amidst broader worries about competition in the generative AI sector, with Amazon also collaborating with Anthropic to secure a $4 billion stake in the company and serve as one of its cloud computing suppliers. The Amazon-Anthropic deal is also under scrutiny by the CMA for potential merger implications.

Additionally, the CMA has launched investigations into OpenAI and Microsoft, following Microsoft’s acquisition of a significant share in the commercial division of ChatGPT creator, as well as into Microsoft’s partnership with AI startup Inflection, where the tech giant obtained access to its AI models and recruited the startup’s founders and management.

An inquiry into Microsoft’s dealings with French AI startup Mistral was terminated in May.

Regulators are apprehensive about the dominance of big tech players, especially in competitive fields like AI, hence direct takeovers are improbable. However, the CMA is vigilant about agreements that could impede competition through other means.

An Anthropic spokesperson refuted any claims of a merger, stating that they remain an autonomous entity with no compromise to their corporate governance independence or partnership freedom.

A Google representative affirmed the company’s commitment to fostering an open and innovative AI ecosystem globally.

Furthermore, it was clarified that “Anthropic utilizes multiple cloud providers and has not sought any exclusive technology rights.”