CMA clears Amazon’s £3bn investment into AI start-up Anthropic

Regulator decides further scrutiny unnecessary

The Competition and Markets Authority (CMA) has given the green light to Amazon’s £3 billion ($4 billion) investment in generative AI start-up Anthropic, confirming that the deal does not meet the threshold for a more extensive review.

The CMA launched an enquiry into the merger in August, reflecting broader concerns about the dominance of a small number of tech giants in the rapidly growing generative AI sector.

The CMA’s investigation focused on whether Amazon’s partnership with Anthropic constituted a "relevant merger situation" under the Enterprise Act 2002 and, if so, whether it might lead to a significant reduction in competition within the UK’s goods and services markets. However, the regulator has now concluded that the deal does not warrant further scrutiny.

A spokesperson for Amazon told The Register: "We welcome the CMA’s decision acknowledging its lack of jurisdiction regarding this collaboration. By investing in Anthropic, we’re helping to spur entry and competition in generative AI."

Meanwhile, the CMA continues to investigate another major partnership involving Anthropic. The regulator is assessing whether Alphabet’s investment in the AI company, stemming from Google’s decision to invest $300 million in February 2024, creates competition concerns. The enquiry into Alphabet began on 30 July 2024 and is ongoing.

Founded in 2021, Anthropic recently announced a partnership with venture capital firm Menlo Ventures to launch the Anthology Fund, a $100 million initiative aimed at supporting AI startups. As a public-benefit company, Anthropic says it focuses on researching and developing AI with an emphasis on safety at the technological frontier, aiming to deploy safe, reliable models for public use.

The Anthology Fund will prioritise investments in five key areas, including AI infrastructure, such as developer tools and middleware, to enhance the capabilities of Claude—Anthropic’s AI assistant—and other large language models (LLMs). The fund will also support solutions in sectors such as bio, healthcare, legal, financial services, supply chains, and cybersecurity, ensuring a focus on safety and societal benefit.