The U.K.’s Competition and Markets Authority (CMA) is delving into the intricate ties and hiring practices involving tech giants Microsoft and Amazon, along with a trio of AI startups, to determine if they comply with merger rules and if they could potentially impact competition in the U.K. market.
This move by the CMA comes at a time when Big Tech’s approach to mergers and acquisitions in the AI sector is under increased scrutiny. The concept of a “quasi-merger” has gained popularity as a way to sidestep regulatory oversight.
Microsoft’s investments and partnerships with AI companies like OpenAI and Inflection AI have raised eyebrows. The recent launch of a London AI hub by Microsoft, led by former Inflection and DeepMind scientist Jordan Hoffmann, has also caught the attention of regulators.
Amazon, on the other hand, recently completed a $4 billion investment in Anthropic, a U.S.-based AI company specializing in large language models.
The CMA’s executive director of mergers, Joel Bamford, emphasized the importance of fair competition in the AI industry, stating that foundation models have the potential to revolutionize various sectors such as healthcare, energy, and finance.
As the CMA invites comments from relevant stakeholders, the tech industry awaits further developments in this ongoing investigation. Stay tuned for updates on this evolving story.