UK Antitrust Watchdog Probes Google’s AI Collaboration with Anthropic

Britain's Competition and Markets Authority is examining the partnership between Google-parent Alphabet and AI startup Anthropic, focusing on its potential impact on competition. The investigation comes amidst a series of antitrust concerns globally regarding collaborations between big tech companies and smaller AI startups. The UK's watchdog seeks public feedback on the matter until August 13.

Britain's Competition and Markets Authority (CMA) is scrutinizing Google-parent Alphabet's partnership with artificial intelligence startup Anthropic and its repercussions on market competition, the regulator announced Tuesday. Over 18 months after Microsoft-backed OpenAI ignited an AI surge with ChatGPT, antitrust bodies globally have raised alarms over multiple agreements between smaller AI outfits and tech goliaths.

Partnerships under examination include Microsoft's collaborations with startups like OpenAI, Inflection AI, and Mistral AI, alongside Alphabet's affiliations with firms such as Anthropic and Cohere. Anthropic's Claude AI models contend with OpenAI's GPT series for market dominance.

In an unprecedented move last week, the CMA issued a joint statement with its counterparts in the U.S. and EU, pledging to collaboratively ensure fair competition in the AI sector. Co-founded by former OpenAI execs Dario and Daniela Amodei, Anthropic announced a substantial $500 million investment from Alphabet, with another $1.5 billion pledged over time. The CMA's current inquiry invites public opinion until August 13, with a final decision on a formal investigation pending thereafter.

(With inputs from agencies.)