UK watchdog probes Alphabet’s deal with Anthropic

Britain’s antitrust watchdog launched a probe on Thursday into Google parent Alphabet’s partnership with artificial intelligence startup Anthropic.

Almost two years after Microsoft-backed OpenAI triggered an AI boom with the release of ChatGPT, regulators around the world have been increasingly concerned by deals struck between big tech companies and smaller startups.

Anthropic, which was cofounded by former OpenAI executives and siblings Dario and Daniela Amodei, last year said it had secured a $500 million investment from Alphabet, which promised to invest another $1.5 billion over time.

Britain’s Competition and Markets Authority (CMA) has been scrutinising Alphabet’s relationship with Anthropic since July, when it began seeking views on whether the deal could undermine competition in the UK.

The regulator has set Dec. 19 as the deadline for its Phase 1 decision, at which point it will decide whether to carry the investigation forward.

Alphabet and Anthropic did not immediately respond to requests for comment.