The $4 billion investment from Amazon in the US artificial intelligence firm Anthropic is now under formal investigation by the UK Competition and Markets Authority (CMA). The CMA has initiated a “Phase 1” investigation to determine whether this high-profile deal could potentially harm competition within the UK market.
Details Of The Investment
The CMA’s decision follows a preliminary review that provided enough information to warrant a formal inquiry. The regulator has up to 40 working days to assess whether the transaction necessitates a deeper “Phase 2” investigation.
Amazon’s investment in Anthropic was completed in March. It includes an initial $1.25 billion equity stake acquired in September, followed by an additional $2.75 billion transaction earlier this year. The deal enables Amazon to integrate Anthropic’s advanced large language models into its Bedrock platform, enhancing its capabilities for developing generative AI applications. These models will be trained on Amazon’s custom AI chips, developed by its Amazon Web Services (AWS) division.
Responses From Amazon And Anthropic
An Amazon spokesperson said the company is “disappointed,” arguing the partnership with Anthropic does not raise significant competition concerns. They said Amazon does not hold a board seat or decision-making authority at Anthropic, which maintains the freedom to collaborate with other partners.
Anthropic reassured stakeholders of its independence, highlighting Amazon’s investment does not compromise its corporate governance. An Anthropic spokesperson said the company retains full autonomy and is eager to cooperate with the CMA to clarify the nature of the investment and partnership.
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Broader Regulatory Context
Amazon’s deal with Anthropic is not the only transaction under regulatory scrutiny in the UK. The CMA is also reviewing Microsoft’s multibillion-dollar investment in AI powerhouse OpenAI. However, the CMA has yet to announce whether it will commence a Phase 1 investigation into the Microsoft-OpenAI partnership.
In the US, the Federal Trade Commission has demanded that major tech firms, including Microsoft, Amazon, and Google, as well as AI companies like OpenAI and Anthropic, provide detailed information about their recent investments and partnerships.
