The U.K.’s Competition and Markets Authority (CMA), which is in charge of antitrust regulation, is investigating a partnership between tech giant Alphabet and artificial intelligence startup Anthropic.
It will launch a probe Friday (Oct. 25) that aims to determine whether the deal could undermine competition in the United Kingdom, according to a notice issued Thursday (Oct. 24). The investigation began with a review July 30, and the CMA invited anyone interested to comment until Aug. 13.
The investigation stems from Alphabet-owned Google’s financial backing of Anthropic, including a $500 million investment last year and an additional commitment of $1.5 billion ($2 billion total), Reuters reported Thursday.
The investment signified Alphabet’s interest in strengthening its position in the AI landscape. Rival Microsoft supports OpenAI, which released ChatGPT in 2022, for example.
Anthropic, which was co-founded by former OpenAI executives Dario Amodei and Daniela Amodei, uses Google Cloud services for its operations, Reuters reported.
“Anthropic is free to use multiple cloud providers and does, we don’t demand exclusive tech rights,” an Alphabet spokesperson said, according to the report, adding that Alphabet is dedicated to maintaining an open and innovative AI ecosystem.
The probe launch is the first phase of the CMA’s investigation, per the Thursday notice. The regulator’s deadline to announce its decision is Dec. 19. At that time, it will determine if a more in-depth investigation is necessary.
An Anthropic spokesperson told Reuters that the company will cooperate with the investigation, per the report.
“We are an independent company, and none of our strategic partnerships or investor relationships diminish the independence of our corporate governance or our freedom to partner with others,” the spokesperson said, according to the report.
The CMA cleared a similar $4 billion partnership between Anthropic and Amazon without requiring a full-scale investigation, The Wall Street Journal reported Thursday.
In the United States, the Federal Trade Commission and Department of Justice began antitrust investigations in June into Microsoft, OpenAI and Nvidia. The probes will scrutinize these companies’ roles in the AI industry, focusing on their business practices rather than mergers and acquisitions.
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