Amazon’s $4 Billion Anthropic Deal Cleared by UK Watchdog (1)

Amazon.com Inc.’s $4 billion investment pact with AI firm Anthropic was cleared following heightened UK scrutiny into Big Tech’s spending spree on artificial intelligence software.

The Competition and Markets Authority said Friday that the tie-up wouldn’t qualify for an investigation under UK merger laws. It found that Anthropic’s local revenue did not meet threshold limits or have a large enough share of supply in the country.

Amazon has twice invested in the builder of AI tools, which is able to generate text and analysis. As part of the tie-up, Anthropic agreed to use Amazon Web Services data centers to power some of its operations, and to use Amazon’s custom-built computer chips.

The CMA is examining Silicon Valley firms’ investments into the nascent AI industry after it found a growing pattern of transactions and highlighted concerns that the companies may use investments as a way to influence the future of the industry. The watchdog’s separate investigations into Google’s investment into Anthropic and Microsoft’s deal with OpenAI are still running.

Read More: Big Tech’s AI Investment ‘Web’ Sparks UK Antitrust Scrutiny

Despite concerns about the investments, the CMA has now open and shut many of its initial probes into the deals. Microsoft Corp.’s investment into Inflection AI was given the green light after the watchdog said the mass hiring of ex-employees from the startup didn’t cause any regulatory concerns.

“We welcome the UK’s CMA decision acknowledging its lack of jurisdiction regarding this collaboration,” an Amazon spokesperson said. “By investing in Anthropic, we’re helping to spur entry and competition in generative AI.”

Amazon’s investment is also being considered by the US Federal Trade Commission, which has sent subpoenas to the company. It’s part of a wider probe that includes Alphabet Inc. and Microsoft into a series of transactions that cemented alliances between the firms and the leading developers of artificial intelligence software.

(Updates with more information throughout)

To contact the reporter on this story:
Katharine Gemmell in London at kgemmell2@bloomberg.net

To contact the editors responsible for this story:
Jeremy Hodges at jhodges17@bloomberg.net

Jonathan Browning

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