Amazon defends $4B Anthropic AI deal from UK monopoly concerns
Amazon risks heavy fines if Anthropic deal violates UK's latest competition law.
Enlarge (credit: Anadolu / Contributor | Anadolu)
The United Kingdom's Competition and Markets Authority (CMA) has officially launched a probe into Amazon's $4 billion partnership with the AI firm Anthropic, as it continues to monitor how the largest tech companies might seize control of AI to further entrench their dominant market positions.
Through the partnership, "Amazon will become Anthropic’s primary cloud provider for certain workloads, including agreements for purchasing computing capacity and non-exclusive commitments to make Anthropic models available on Amazon Bedrock," the CMA said.
Amazon and Anthropic deny there's anything wrong with the deal. But because the CMA has seen "some" foundational model (FM) developers "form partnerships with major cloud providers" to "secure access to compute" needed to develop models, the CMA is worried that "incumbent firms" like Amazon "could use control over access to compute to shape FM-related markets in their own interests."