The UK’s Competition and Markets Authority (CMA) has concluded that Amazon’s investment in Anthropic does not warrant further investigation.
- The CMA’s decision stems from Anthropic’s UK turnover, which falls below the threshold of £70 million.
- Furthermore, Amazon and Anthropic combined do not control 25% or more of any market segment in the UK.
- Amazon’s total investment of $4 billion in Anthropic includes $1.25 billion in September 2023 and $2.75 billion in March 2024.
- As part of this investment, Amazon gains certain advisory and control rights concerning Anthropic’s key business decisions.
The Competition and Markets Authority (CMA) has determined that Amazon’s recent financial involvement with Anthropic, an artificial intelligence firm, should not be subject to further investigation. This conclusion is based on Anthropic’s UK turnover not exceeding the £70 million benchmark that necessitates merger scrutiny.
In addition to turnover considerations, the CMA also assessed market share impacts. It found that Amazon and Anthropic together do not hold a 25% or greater share of any goods or services market within the UK. This metric is crucial in deciding whether a merger warrants regulatory intervention.
Amazon’s financial commitment to Anthropic involves a substantial $4 billion, structured over two phases: $1.25 billion infused in September 2023 and a subsequent $2.75 billion planned for March 2024. This investment is notable for its potential conversion into equity, dependent on certain specified conditions.
Central to the investment agreement is the arrangement for Amazon Web Services (AWS) to act as Anthropic’s primary cloud service provider. This partnership includes the utilisation of AWS Trainium and Inferentia chips, which are critical for developing, training, and deploying Anthropic’s future artificial intelligence models.
In exchange for its investment, Amazon has acquired certain rights, such as the power to advise on key business matters and the right of first notification in the event of a change in Anthropic’s control. These provisions give Amazon significant influence within the partnership.
The CMA’s decision aligns with its earlier ruling in May concerning Microsoft’s partnership with Mistral AI, which also did not meet the criteria for investigation. Such precedence indicates a consistent regulatory approach towards assessing technological and AI sector mergers.
The CMA has concluded that Amazon’s investment in Anthropic does not create competitive concerns within the UK market.
