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British Regulators are Scrutinizing AI Partnerships Involving Microsoft and Amazon

British antitrust regulators are soliciting opinions on alliances between Microsoft and Amazon with smaller generative AI model manufacturers.

The Competition and Markets Authority (CMA) of the U.K. announced on Wednesday that it was inviting interested third parties to provide their perspectives on significant AI partnerships involving Microsoft, the French AI company Mistral, Amazon, and the U.S. startup Anthropic. Additionally, the CMA is examining Microsoft’s recruitment of former employees from Inflection AI.

The CMA is seeking input from interested parties until May 9 to determine whether these arrangements constitute mergers. This invitation marks the initial phase of gathering information before the formal launch of a Phase 1 review by British regulators. According to the CMA, an invitation to comment does not trigger the formal Phase 1 review.

Microsoft has disputed the characterization of its agreements with Mistral and its hiring practices with Inflection as mergers. A Microsoft spokesperson stated, “We believe that conventional business practices such as talent acquisition or investing in an AI startup are competitive and distinct from mergers.”

“We are committed to providing the UK Competition and Markets Authority with the necessary information to conclude its inquiries promptly,” the spokesperson added.

Amazon, on the other hand, expressed its surprise at the CMA’s review of its collaboration with Anthropic. An Amazon spokesperson highlighted the unique aspects of their partnership, emphasizing a limited investment, the absence of a board director or observer role for Amazon, and Anthropic’s continued use of multiple cloud providers.

“By investing in Anthropic, which has recently launched its cutting-edge Claude 3 models, we are enhancing competition in the generative AI sector. Customers are enthusiastic about the opportunities this collaboration offers. We are confident that the facts support our position and hope for a swift resolution by the CMA,” the Amazon spokesperson concluded.