UK Antitrust Regulator Probes Google’s Ties with AI Firm Anthropic

The UK’s Competition and Markets Authority (CMA) has disclosed an early-stage investigation into Google’s relationship with Anthropic, a U.S.-based AI company. This announcement follows a series of investments by Google in Anthropic, stirring regulatory concerns regarding potential anti-competitive practices.

According to TechCrunch, the CMA’s current investigation has not yet escalated to an official probe. However, the regulatory body is inviting comments from stakeholders and other interested parties to determine whether the partnership between Google and Anthropic constitutes a “relevant merger situation” and if it could lead to a “substantial lessening of competition” within the UK.

Anthropic, founded in San Francisco in 2021, focuses on developing AI systems prioritizing safety, transparency and risk mitigation. The company operates as a public benefit corporation (PBC), distinguishing itself from its competitors. Among its developments are large language models (LLMs) and a chatbot named Claude, which rivals OpenAI’s ChatGPT and Google’s Bard.

TechCrunch reports that Anthropic has raised nearly $10 billion in funding since its inception. Google’s investments in the company began with a reported $300 million early last year, followed by an additional $2 billion. Anthropic has also attracted significant funding from other major tech players, including a $4 billion investment from Amazon.

Read more: Google And OpenAI Disagree On Government Oversight Of AI

This influx of investments has caught the attention of regulators, concerned about big tech companies’ strategies that may allow them to exert control over emerging innovators without triggering full regulatory scrutiny. Such tactics, termed “quasi-mergers,” may involve hiring key startup personnel or making strategic investments rather than outright acquisitions.

Per TechCrunch, the CMA initiated inquiries into several similar deals in April, including Microsoft’s investment in the French startup Mistral AI. The investigation concluded that this investment did not meet the criteria for further scrutiny under current merger regulations. The CMA is also examining Amazon’s involvement with Anthropic and is anticipated to launch a comprehensive investigation into Microsoft’s partnership with ChatGPT-maker OpenAI.

Earlier this month, the CMA confirmed it is launching a full regulatory probe into Microsoft following its recruitment of the core team behind Inflection AI, a competitor to OpenAI, which Microsoft had previously funded.

Source: TechCrunch