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CMA Investigates Google’s Investment in AI Firm Anthropic
Explore the CMA’s investigation into Google’s significant investment in AI firm Anthropic. Delve into the implications for competition, innovation, and the future of artificial intelligence as regulatory scrutiny intensifies.
Investigation into Google’s Partnership with Anthropic
The UK’s Competition and Markets Authority (CMA) is currently conducting an investigation into the relationship between Alphabet, Google’s parent company, and the artificial intelligence firm Anthropic. This inquiry aims to determine whether this partnership constitutes a “relevant merger situation” that could significantly diminish competition within the rapidly evolving artificial intelligence (AI) sector.
Last October, Google committed to investing up to $2 billion (€1.85 billion) in Anthropic, in addition to acquiring a reported 10 percent stake in the company. Anthropic is known for developing Claude, a sophisticated chatbot that is seen as a direct competitor to OpenAI’s ChatGPT.
This marks the second time the CMA is scrutinizing investments in Anthropic. The authority is also assessing Amazon’s proposal to inject up to $4 billion (€3.70 billion) into the firm. Earlier this year, in May, the CMA concluded another investigation regarding Microsoft’s substantial €15 billion investment in Mistral AI, a French company specializing in AI, ultimately deciding there was insufficient evidence to pursue further action.
Sarah Cardell, CEO of the CMA, expressed her concerns in a speech earlier this year regarding the implications of numerous partnerships among a limited number of major corporations. Specifically, she identified Google, Apple, Microsoft, Meta, Amazon, and NVIDIA—leading suppliers of GPU chips essential for AI model training—as key players in this intricate web of alliances.
Cardell stated, “The essential challenge we face is how to harness this immensely exciting technology for the benefit of all, while safeguarding against potential exploitation of market power and unintended consequences.” Her remarks were made during a statement in April, emphasizing the need for vigilance in this burgeoning field.
As the investigation progresses, Euronews Next has reached out to both Alphabet and Anthropic for comments but has yet to receive an immediate response.