The UK’s Competition and Markets Authority (CMA) has determined that Amazon’s partnership and $4 billion equity investment in AI startup Anthropic cannot be investigated under current merger rules. The CMA announced this decision on September 27, concluding that the deal does not meet the necessary criteria for an in-depth merger review.
The CMA’s scrutiny of this transaction followed a growing trend of regulatory concern over Big Tech’s influence on AI startups. Despite some expectations that Amazon’s partnership with Anthropic might trigger further investigation due to its scale, the regulator found that Anthropic’s UK revenue did not exceed the £70 million threshold required to launch a deeper inquiry. Additionally, Amazon and Anthropic’s combined share of supply in the UK was determined to be insufficient to warrant further regulatory intervention.
Amazon's partnership with Anthropic includes a substantial financial investment and a commitment for Anthropic to use Amazon Web Services (AWS) as its primary cloud provider for certain workloads. The deal also involves collaboration on AWS chip technology and the integration of Anthropic's AI models into Amazon's services.
While the CMA's decision clears a significant hurdle for the Amazon-Anthropic partnership, it doesn't end regulatory scrutiny altogether. The US Federal Trade Commission is still examining the deal as part of a broader probe into Big Tech's AI investments.
In response to the CMA’s decision, an Amazon spokesperson said, “We welcome the UK’s CMA decision acknowledging its lack of jurisdiction regarding this collaboration.” Anthropic echoed this sentiment, reiterating that its partnerships and investor relationships do not compromise its independence.
This decision highlights the evolving landscape of AI investments, as regulators worldwide increasingly monitor how strategic investments from major players could shape the future of the industry. The CMA still has ongoing investigations on Google's investment in Anthropic and Microsoft's deal with OpenAI.