The UK’s Competition and Markets Authority (CMA) has initiated an investigation into Google’s investment in the AI startup Anthropic to ensure the deal does not threaten competition. In July, the CMA began reviewing the transaction, and has now opened an official investigation, with a final decision expected by December 19, 2024.
Since 2022, investments from large corporations in AI startups have significantly increased. Google has invested $2 billion in Anthropic to bolster its AI positioning, while Amazon has invested $4 billion in the same startup to support its competition with other industry leaders.
For Google, this investigation marks a setback, as the CMA had previously approved Amazon’s larger investment in Anthropic. Google and Anthropic emphasize that the investment does not grant Google control over the startup’s decisions, and Anthropic retains its independence and is open to working with other partners.
