The competition watchdog in the United Kingdom is currently examining the collaborative efforts between Alphabet and Anthropic, an AI startup, to determine if it has negatively impacted market competition. The Competition and Markets Authority (CMA) is specifically investigating whether the partnership has created a scenario of reduced competition within the UK.

Prior to commencing a formal inquiry, the regulatory body is seeking input from relevant stakeholders and interested parties. Alphabet and Anthropic have not yet provided any comments regarding the ongoing investigation.

Alphabet’s commitment to invest up to $2 billion in Anthropic was disclosed in October, which included an initial $500 million and a subsequent $1.5 billion infusion over time, augmenting Google’s existing stake in the company. Anthropic is recognized for its development of Claude, a competing chatbot to OpenAI’s ChatGPT.

Major U.S. corporations have been actively investing in AI-focused organizations in light of the escalating global interest in artificial intelligence. Amazon, for instance, announced plans to invest a substantial sum of up to $4 billion in Anthropic last year.

The influx of capital from tech giants into smaller enterprises has raised concerns among regulators in both the U.S. and the UK. In April, the CMA initiated investigations into collaborations involving Microsoft with French AI firm Mistral, Amazon with Anthropic, and Microsoft’s recruitment practices related to former employees of Inflection AI.

As more information unfolds, Hayden Field and Ryan Brown from good have contributed to this article. Stay tuned for updates as this story continues to develop.

This is a current news event. Further updates will be provided.