• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Amazon’s $4 billion investment in AI firm Anthropic faces U.K. merger investigation
Editor's Pick

Amazon’s $4 billion investment in AI firm Anthropic faces U.K. merger investigation

by August 9, 2024
by August 9, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

LONDON — E-commerce giant Amazon’s multibillion-dollar investment in the U.S. artificial intelligence firm Anthropic is formally being investigated by a U.K. competition regulator.

The Competition and Markets Authority said Thursday that it has begun a “Phase 1” investigation into Amazon’s investment and partnership with Anthropic to assess whether the deal has resulted in a relevant merger situation that may harm competition in the U.K.

Following initial scrutiny into the Amazon-Anthropic partnership, the CMA now has “sufficient information” in relation to the tie-up to begin a formal probe, the regulator said in a notice on its website.

The CMA now has up to 40 working days to decide whether the transaction could harm competition and should therefore be scrutinized further in an in-depth “Phase 2” investigation.

Amazon completed in March a $4 billion investment in Anthropic. The deal consisted of an initial $1.25 billion equity stake in September, followed by a further $2.75 billion transaction finalized earlier this year.

As part of the deal Amazon will make Anthropic’s powerful large language models available on its Bedrock platform for building generative AI applications. Anthropic’s models will also be trained and deployed on Amazon’s own custom AI chips, which were built by its Amazon Web Services cloud computing division.

In a statement to CNBC, an Amazon spokesperson said the company is “disappointed” the CMA proceeded with an initial Phase 1 merger probe, adding that its collaboration with Anthropic “does not raise any competition concerns or meet the CMA’s own threshold for review.”

“By investing in Anthropic, Amazon, along with other companies, is helping Anthropic expand choice and competition in this important technology. Amazon holds no board seat nor decision-making power at Anthropic, and Anthropic is free to work with any other provider (and indeed has multiple partners),” the spokesperson said via email.

Amazon’s spokesperson added that the company will continue to make Anthropic’s models available to customers via Bedrock.

An Anthropic spokesperson told CNBC: “We are an independent company. Our strategic partnerships and investor relationships do not diminish our corporate governance independence or our freedom to partner with others.”

“Amazon does not have a seat on Anthropic’s board, nor does it have any board observer rights,” the Anthropic spokesperson added. “We welcome the opportunity to cooperate with the CMA and provide them with a comprehensive understanding of Amazon’s investment and our commercial collaboration.”

The Amazon-Anthropic pact is not the only deal facing scrutiny from regulators in the U.K.

The CMA is separately scrutinizing U.S. software giant Microsoft’s multibillion-dollar partnership and investment in AI giant OpenAI.

However, the watchdog is yet to reveal whether it will begin a Phase 1 investigation into the Microsoft-OpenAI partnership.

Stateside, the U.S. Federal Trade Commission in January sent orders to tech giants Microsoft, Amazon and Google, along with AI firms OpenAI and Anthropic, requiring them to share information about their respective recent investments and partnerships.

Some smaller tech companies have criticized Big Tech firms over their strategy of building stakes in some of the key companies building advanced AI systems to get closer to them.

In May, Matt Calkins, CEO of enterprise software firm Appian, told CNBC that getting as much data as possible and acquiring stakes in fast-growing AI startups won’t necessarily result in success in the field.

“This is a market for the clever,” Calkins said. “The fact that you’ve got enough money to buy, or buy a piece of, Anthropic or Mistral or any of that, that’s impressive. But AI may not be a ‘winner take all’ market.”

“There’s going to be different AI algorithms for different purposes, and they are going to be much more or less valuable, depending on whether and how you’ve loaded your own data into it,” he added.

This post appeared first on NBC NEWS
You Might Also Like
  • Nvidia results spark global chip rally
  • Federal regulators are probing whether Cash App leaves door open to money launderers, terrorists
  • First Republic bank says deposits tumbled 40% to $104.5 billion in the first quarter
  • FTX exec who turned on Sam Bankman-Fried sentenced to 7.5 years in prison
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Boeing’s new outsider CEO Ortberg takes the helm, this time from the factory floor
next post
TLT Turns the Corner and Starts to Lead

You may also like

S&P 500, Nasdaq close at all-time highs ahead of inflation...

July 10, 2024

YouTube is dominating the living room, forcing media companies to...

June 28, 2024

31 percent of all IoT SIMs were managed with third-party...

December 25, 2022

Florida’s insurance industry faces upheaval amid Idalia cleanup

September 1, 2023

Prepare to flick off your incandescent bulbs for good under...

August 4, 2023

DeepSeek hit with large-scale cyberattack, says it’s limiting registrations

January 28, 2025

Joann to shutter all 800 fabric stores after failing to...

February 25, 2025

Nvidia loses nearly $600 billion in market value after Chinese...

January 28, 2025

See how the prices have changed for popular grocery items

April 14, 2023

Prosecutors in Sam Bankman-Fried trial compare defense argument to ‘Dumb...

October 24, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Nvidia results spark global chip rally

      May 30, 2025
    • Boeing to resume airplane deliveries to China next month, ramp up Max production, CEO says

      May 29, 2025
    • Nuclear Power Trio: OKLO, SMR, and CCJ in Focus

      May 29, 2025
    • Analyzing SIL, USO, and NVDA: Could These Bullish Patterns Trigger?

      May 29, 2025
    • E.l.f. Beauty to acquire Hailey Bieber skin care brand Rhode in up to $1 billion deal

      May 29, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,764 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,470 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,450 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,429 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,307 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,104)
    • Investing (538)
    • Stock (2,578)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Nvidia results spark global chip rally

      May 30, 2025
    • Boeing to resume airplane deliveries to China next month, ramp...

      May 29, 2025
    • Nuclear Power Trio: OKLO, SMR, and CCJ in Focus

      May 29, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,104)
    • Investing (538)
    • Stock (2,578)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Getty Images to buy Shutterstock as...

    January 8, 2025

    Starbucks imposes new limits on what...

    April 23, 2025

    Pepsi introduces Colachup, a ketchup infused...

    July 1, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here