The UK’s Competition and Markets Authority (CMA) has decided not to further investigate Amazon’s investment in AI firm Anthropic.
- The decision is based on the fact that Anthropic’s UK turnover does not exceed £70 million, avoiding the creation of a significant merger situation.
- Amazon’s investment in Anthropic totals $4 billion, with notable installments in 2023 and 2024.
- Under their partnership, Amazon provides AWS cloud services to Anthropic, granting it specific rights within the agreement.
- The CMA’s decision mirrors a prior ruling on a similar partnership involving Microsoft and Mistral AI.
The UK Competition and Markets Authority (CMA) has concluded its inquiry into Amazon’s substantial investment in Anthropic, a Californian artificial intelligence firm, opting not to pursue further investigation. This decision arises from Anthropic’s UK turnover remaining below the £70 million threshold, thereby not constituting a ‘relevant merger situation’ in the UK. Additionally, the partnership does not collectively hold a 25% market share of any goods or services, a key factor for triggering further investigation.
Amazon has pledged a total of $4 billion towards Anthropic, with significant allocations of $1.25 billion in September 2023 and $2.75 billion in March 2024. These investments are structured as convertible notes, allowing conversion into equity under predetermined conditions, underpinning Amazon’s strategic interest in Anthropic’s advanced AI developments.
Integral to this alliance is Anthropic’s adoption of Amazon Web Services (AWS) as its principal cloud solutions provider, leveraging AWS Trainium and Inferentia chips for developing, training, and deploying its foundational AI models. This collaboration ensures Anthropic’s capacity to scale its AI operations efficiently, granting Amazon specific consultation and advisory rights on pivotal business matters.
The contractual framework also positions Amazon with a right of first notification should there be any transition in Anthropic’s control, safeguarding its investment interests. While this partnership prompted initial regulatory scrutiny, the CMA has resolved that the circumstances do not meet the necessary criteria for further inquiry.
This outcome aligns with a precedent set in May when the CMA announced a similar decision regarding Microsoft’s partnership with Mistral AI, further affirming the regulatory body’s consistent approach to such collaborations.
Amazon’s investment in Anthropic, although significant, does not breach UK competition thresholds, thus requiring no additional regulatory measures.
