UK Launches Probe into Google's Investment with Anthropic

The U.K. Competition and Markets Authority (CMA) has initiated an early-stage probe into Google’s investments in Anthropic, a U.S.-based AI startup. Although the investigation is not yet official, the CMA is seeking input from stakeholders to determine if the partnership constitutes a relevant merger situation that could significantly reduce competition in the U.K. market. Anthropic, founded in 2021, focuses on developing AI systems with an emphasis on safety and transparency, and has raised nearly $10 billion in funding, including substantial investments from Google and Amazon. The CMA's scrutiny comes amid broader investigations into tech giants' investments in AI companies. In April, the CMA examined several deals, including Microsoft’s investment in Mistral AI, which was ultimately deemed too small for regulatory action. The authority is also reviewing Amazon's relationship with Anthropic and is expected to launch a full investigation into Microsoft's partnership with OpenAI, the creator of ChatGPT. The outcome of the CMA's inquiry into Google and Anthropic may depend on the nature of Google's investment. If classified as a minority stake without significant control over Anthropic, the CMA could dismiss the case, similar to its handling of Microsoft’s investment in Mistral AI. Both Google and Anthropic have expressed their commitment to transparency. Anthropic emphasized its independence and the non-exclusive nature of its partnerships, while Google reiterated its dedication to fostering an open AI ecosystem, allowing Anthropic to utilize various cloud providers without restrictions.