Google’s Partnership with AI Firm Anthropic Avoids Further Scrutiny
Google’s partnership with AI firm Anthropic has avoided further scrutiny after the UK antitrust watchdog concluded it doesn’t qualify for a full-blown investigation under merger rules.
CMA’s Decision
Google has not gained “material influence” over Anthropic as a result of the deal, the Competition and Markets Authority (CMA) said on Tuesday (Nov 19). The agency started looking at the partnership after Alphabet’s Google pledged to invest US$2 billion into the startup last year. Prior to the financing, Google also signed a cloud agreement with Anthropic.
Background
The CMA has been at the forefront of attempts by global regulators to ensure Big Tech’s bets into the AI industry don’t distort the market or lead to a handful of all-powerful firms. The UK agency voiced its concerns about what it called an “interconnected web” of partnerships and investments in the AI ecosystem.
Other Deals
While Amazon.com’s own US$4 billion investment into Anthropic was cleared in September, Microsoft’s investment into its OpenAI is still under the CMA’s scrutiny. The watchdog also cleared Microsoft’s Mistral and Inflection deals after relatively quick investigations.
Conclusion
Tuesday’s decision will come as a relief to Mountain View, California-based Alphabet as multiple antitrust cases pile up in Europe and the US – including one that threatens to force Google to sell off its Chrome browser.
FAQs
Q: What is the significance of Google’s partnership with Anthropic?
A: The partnership allows Google to invest US$2 billion in Anthropic, a company specializing in artificial intelligence safety and research.
Q: What was the outcome of the CMA’s investigation?
A: The CMA concluded that Google did not gain “material influence” over Anthropic and therefore does not qualify for a full-blown investigation under merger rules.
Q: What does this mean for Google and Anthropic?
A: This decision allows Google to maintain its partnership with Anthropic without facing further scrutiny from the CMA.
Q: Are there other deals that are still under investigation?
A: Yes, Microsoft’s investment into its OpenAI is still under investigation by the CMA, while Amazon.com’s investment into Anthropic was cleared in September.
Q: What is the purpose of the CMA’s investigation?
A: The CMA aims to ensure that Big Tech’s investments in the AI industry do not distort the market or lead to a handful of all-powerful firms.
Q: Can Google exercise material influence over Anthropic?
A: No, according to the CMA, Google does not have the ability to exercise material influence over Anthropic through the partnership.
Q: What does Anthropic say about its independence?
A: Anthropic’s spokesperson stated that the company is an independent entity and that its partnerships and investor relationships do not diminish its corporate governance independence or its freedom to partner with others.
