The UK’s market regulator is taking a closer look at AWS’s multi-billion-dollar investment in Anthropic. An investigation will have to determine whether this is a generous investment or a takeover.

CMA, the British market regulator, announces an investigation into AWS and Anthropic. The authority wants to know exactly what happened between the two companies after AWS pumped several billion dollars into the start-up. A survey in April had provided enough evidence to justify an investigation, said CMA.

AWS announced an investment in Anthropic in September 2023. Spread over two tranches, AWS provided Anthropic with four billion dollars. Anthropic’s Claude models are also available through the AWS cloud. The investment was also strategically important for AWS to enter the AI ​​battle with Microsoft, which has OpenAI as a partner.

Anthropic has only been around for three years, but the company is experiencing rapid growth with its Claude models. The third generation Claude 3 is often placed above OpenAI’s GPT-4 in comparison tests. In addition to AWS, Google has also invested several billion in the company.

Investment or acquisition

The British market regulator has reservations about AWS’s investments. The investigation must determine whether it is an investment or a takeover. In the case of the second scenario, the CMA wants to examine its impact on competition in the AI ​​market. A conclusion is expected in October.

Investigations into multi-billion dollar deals between the two companies are not uncommon. The multi-billion dollar investments by Microsoft and OpenAI also raise many questions among regulators. Ultimately, regulators saw no point in this collaboration. Microsoft has managed to sufficiently convince policymakers that OpenAI is not just a partner, but also a competitor.

AWS reacted with disappointment to the research. In a response to The Register, the company said it had created more competition in the AI ​​market because otherwise there would be “only one option” (read: OpenAI). Companies like Anthropic need capital to train models, it continues.