UK competition watchdog probes Google’s partnership with Anthropic

The United Kingdom’s Competition and Markets Authority (CMA) has opened an investigation into the partnership between Google and the Anthropic AI start-up. The CMA is assessing whether or not Google’s investment could result in a “substantial lessening of competition” in the UK AI services market.

This investigation comes at a time when regulators are increasingly concerned about tech Google’s growing presence within the artificial intelligence field, fearing such investments may serve to consolidate market power and inhibit competition.

Founded in 2021 by siblings Dario and Daniela Amodei, who previously worked at OpenAI, Anthropic focuses on improving the safety and reliability of AI models. It has secured substantial funding from Google, which is said to have reached a multi-billion-dollar agreement. As part of this deal, Anthropic also uses Google’s cloud computing services – a common practice that raises potential issues around exclusivity and competitive restraints.

Regulators intensify scrutiny on big tech’s AI deals

It is not just Google’s dealings with Anthropic that have caught the eye of CMA. The watchdog is also examining Amazon’s  $4bn investment in Anthropic and has initiated a similar investigation into Microsoft’s multi-billion-dollar deal with OpenAI. Furthermore, Microsoft’s employment of top personnel from the Inflection AI start-up is being looked into by CMA over fears that this could limit competition in the AI landscape.

The regulators are particularly vigilant when it comes to dominant companies using their market power to kill competition or block innovation – especially as these organizations make forays into new sectors through partnerships or acquisitions.

Responses from Google and Anthropic

Anthropic assured the CMA that their partnership was independent and open. Anthropic stated that strategic alliances did not compromise its independence nor prevent it from working with other partners. Regardless of those affiliations, the company reiterated its mission to develop secure and dependable AI systems.

On the other hand, Google stated its commitment to creating an open and innovative ecosystem for artificial intelligence (AI). The tech giant clarified that although Anthropic used cloud services, it is not restricted to them and is free to utilize multiple providers. Instead of seeking exclusive rights over any technology belonging to Anthropic, the company wants different technologies and solutions to coexist.