The fact that Amazon and Microsoft have begun investing in AI-related startups is coming under the lens of concerned authorities in the UK.
The Competition and Markets Authority is collecting information regarding a $4 billion contract signed between Amazon and Anthropic, an AI business that is creating competitiveness in the UK. In addition, it scrutinized Amazon’s association with Mistral and Inflection AI, which Microsoft nearly absorbed. Microsoft’s shares remained unchanged, but Amazon’s dropped by 1.7%.
Quick responses and actions are coming when observing tie-ups between the big players and AI businesses out of fear that it might create greater market competition than necessary. However, in Microsoft’s opinion, small investments in AI startups do not mean collaborations.
Microsoft’s association with OpenAI Inc. is undergoing a certain amount of scrutiny. Still, it has been realized that an official investigation is not required since it is not a takeover. The US Federal Trade Commission has also joined the fray to conduct a closer study.
In the view-point of Amazon, it is unlike CMA to look into an association of this kind. Their link with Anthropic is simply a matter of funding and nothing else. As for the CMA, it is looking into the cloud computing space, too.
In the last few months, Microsoft has struck certain deals with AI companies, like Mistral, where it invested $15 million. Mistral has committed to remaining transparent on all aspects of the deal. They are an independently run business, and that will remain so.
Last month, Microsoft took on board Mustafa Suleyman, the co-founder of Inflection AI, as Vice President.
What is your reaction?
