UK launches formal investigation into Google's collaboration with Anthropic as AI investment regulation tightens
The Competition and Markets Authority (CMA) in the UK has officially launched an investigation into the collaboration between Google and the artificial intelligence startup Anthropic, which may lead to the interruption of the partnership. CMA stated that it will conduct a Phase 1 merger investigation to ensure that investments by large tech companies in the AI industry do not distort the market. Google pledged to invest $2 billion in Anthropic last year and signed a cloud agreement. CMA will decide whether a more in-depth investigation is necessary by December 19th
According to the financial news app Zhitong Finance, Google (GOOG.US, GOOGL.US) faces the risk of interruption in its collaboration with the artificial intelligence (AI) startup Anthropic in the UK. Previously, competition regulators called for further investigation into the potential impact of their cooperation. The UK Competition and Markets Authority (CMA) announced on Thursday that it will initiate a formal Phase 1 merger investigation, the latest sign of regulators tightening oversight of investments in AI startups.
Google pledged to invest $2 billion in Anthropic last year. Prior to the financing, Google also signed an important cloud agreement with Anthropic.
CMA has been at the forefront of global regulatory agencies to ensure that large tech companies' investments in the AI industry do not distort the market. The US Federal Trade Commission and the EU are also investigating various collaborative relationships.
Microsoft (MSFT.US)'s investment in OpenAI may also face scrutiny from UK regulators, while Amazon (AMZN.US)'s $4 billion investment in Anthropic was approved in September. CMA found that Anthropic's revenue in the local market did not meet the specified threshold limits, and its market share in the country was insufficient to trigger antitrust intervention. In addition, CMA swiftly initiated and terminated an investigation into Microsoft's transactions with Mistral and Inflection.
CMA will decide by December 19 whether a more in-depth investigation is needed into Google's collaboration with Anthropic. A Google spokesperson declined to comment