British competition regulators have announced their intention to investigate recent artificial intelligence deals involving Microsoft and Amazon due to concerns about potential anti-competitive behavior in the AI industry. The Competition and Markets Authority (CMA) revealed that it will be closely examining Microsoft's collaboration with Mistral AI from France and the recruitment of key personnel from Inflection AI. Additionally, the CMA disclosed a separate investigation into Amazon's substantial $4 billion investment in Anthropic, a San Francisco-based company.
Major technology firms have been heavily investing in generative AI startups as interest in the technology grows, prompting regulatory scrutiny from antitrust authorities. The CMA stated that it is soliciting feedback from relevant stakeholders before determining whether a comprehensive antitrust investigation is warranted.
The executive director of mergers at the CMA, Joel Bamford, emphasized the agency's commitment to objectively evaluating the impact of these deals on competition in the UK. Microsoft has expressed willingness to cooperate with the CMA's inquiries, asserting that their business practices, such as talent acquisition and fractional investments in AI startups, promote competition without constituting mergers.
Microsoft's recent strategic moves include hiring Mustafa Suleyman, a co-founder of Google's DeepMind AI research lab, to lead its consumer AI division, as well as recruiting top talent from Inflection AI. The company has also formed partnerships with Mistral and OpenAI, with the latter also under CMA scrutiny.
Mistral AI affirmed its commitment to collaborating with the CMA to safeguard its independence and market access. On the other hand, Amazon defended its collaboration with Anthropic, highlighting the unique nature of their partnership, which involves a limited investment without granting Amazon a board role or control over Anthropic's operations.
The CMA's increased focus on foundation models in the AI market stems from concerns raised in a recent report about the potential for dominant companies to leverage partnerships with key AI players to enhance their market positions. The regulatory scrutiny underscores the growing importance of ensuring fair competition in the rapidly evolving AI industry.
