Amazon, Microsoft AI partnerships face potential UK antitrust probe Amazon, Microsoft AI partnerships face potential UK antitrust probe
The UK Competition and Markets Authority is currently inviting comments.
2 min read
Updated: Apr. 24, 2024 at 9:13 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The UK’s Competition and Markets Authority (CMA) has taken preliminary steps to investigate recent partnerships made by top AI sector participants, according to an April 24 release.
The CMA invited comments on Microsoft’s partnership with Mistral AI, Amazon’s partnership with Anthropic, and Microsoft’s hiring and licensing arrangement with Inflection AI.
The antitrust agency aims to determine whether each firm’s activities “fall within UK merger rules” and their potential impact on competition. Joel Bamford, Executive Director of Mergers, said the CMA will conduct any assessment “objectively and impartially.”
The agency said a past report identified a web of more than 90 partnerships and strategic investments, some of which may not fall within merger rules.
The CMA’s current invitations to comment (ITC) do not begin a formal review. The agency has not reached any conclusions and does not necessarily have jurisdiction for further action.
The comment period has a May 9 deadline.
Companies respond
Several targetted companies have contested the regulator’s action due to the nature of their partnerships.
In a statement to CNBC, Amazon called the review “unprecedented” for a partnership of its type abd emphasized that it only provided a limited investment to Anthropic — which does not grant it a board seat or an observer role.
Additionally, Anthropic relies on multiple cloud providers beyond Amazon Web Services for its operations.
Anthropic separately told CNBC that it operates independently from Amazon. The company said it intends to cooperate with the CMA and will provide the requested information.
Microsoft told CNBC it is “confident” that hiring and fractional investments differ from mergers. It said it would provide the CMA with information.
Original partnerships
Amazon entered its $4 billion partnership with Anthropic in March, while Microsoft confirmed a $16 million investment with Mistral in February.
The CMA described each partnership’s computer resource sharing and business aspects but only mentioned the Amazon partnership’s financial aspects.
Microsoft also reached a licensing arrangement with Inflection in March, simultaneously hiring Inflection co-founder Mustafa Suleyman and several other employees. The size of the deal is estimated at $650 million.
Microsoft has also partnered extensively with OpenAI. The CMA opened a comment period on the partnership in December 2023 but closed it in January. It did not lead to a probe.
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Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
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Microsoft
Microsoft is an American multinational technology company that develops, licenses, and sells computer software, consumer electronics, and personal computers.
Amazon
Amazon.com, Inc., commonly known as Amazon, stands as an American multinational technology company renowned for its diverse portfolio encompassing e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence.
Anthropic
Anthropic is a US-based artificial intelligence (AI) startup and public-benefit corporation founded by former members of OpenAI in 2021.
OpenAI
OpenAI is an AI research and deployment company committed to ensuring that general-purpose artificial intelligence helps all of humanity.