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Amazon-Anthropic Partnership Gets CMA Approval

Image by Christian Wiediger, from Unsplash

Amazon-Anthropic Partnership Gets CMA Approval

Reading time: 2 min

Posted on Sep 27, 2024

Written by: Kiara Fabbri Multimedia Journalist
Fact-Checked by Justyn Newman Lead Cybersecurity Editor

In a Rush? Here are the Quick Facts!

The CMA cleared Amazon’s $4 billion partnership with Anthropic.
Anthropic will use AWS and Amazon’s custom chips for AI development.
Anthropic’s UK turnover is below the £70 million threshold for review.

The Competition and Markets Authority (CMA) announced today that it has cleared Amazon’s partnership with the AI startup Anthropic.

The $4 billion deal involves Anthropic, a San Francisco-based AI safety and research company, using Amazon Web Services as its primary cloud provider. Anthropic will also rely on Amazon’s custom chips to build, train, and deploy its AI models.

The deal also gives Amazon consultation rights on key business decisions and the ability to submit a counteroffer if Anthropic changes ownership.

TechCrunch (TC) noted that the deal has faced scrutiny amid growing concerns about Big Tech’s influence over emerging AI startups, as companies like Amazon seek to expand their influence in the fast-growing field of generative AI.

The watchdog had initially reviewed the partnership to determine if Amazon might gain “material influence” over Anthropic, potentially limiting competition, as noted by TC.

TC suggests this approach, known as a “quasi-merger,” allows Big Tech to influence startups without outright acquisition, raising concerns about long-term control over emerging technologies.

However, the CMA concluded that Anthropic’s UK turnover didn’t meet the £70 million threshold for a more detailed review, and the combined market share of both companies in the region remains below 25%.

This means that Anthropic’s revenue and combined market share with Amazon in the UK weren’t large enough to require further scrutiny.

As a result, the CMA will not conduct an in-depth investigation, clearing the way for the partnership to proceed without further oversight.

Kiara Fabbri

Written by: Kiara Fabbri

Hi, I’m Kiara Fabbri a Tech News Writer at WizCase. I'm a multimedia journalist with a keen interest in innovative and immersive news storytelling. Fluent in three languages—Italian, English, and Spanish—I'm deeply engaged in all facets of news reporting. I am currently undertaking a Ph.D. exploring VR applications in journalism. Following my studies in psychology (BSc) and political psychology (MSc), I embarked on a three-year journey across South America. During this time, I undertook a 4000 km solo bicycle trip from Chile to Brazil. There, I camped, cooked on the road, and volunteered in various facilities. It was during these travels that I discovered my passion for journalism. Subsequently, I pursued a Master's program in journalism innovation and enterprise. My career in journalism has seen me produce VR immersive experiences covering a range of topics. These include documenting an Anti Militaristic raid of a NATO Base, life in the Brazilian Favelas, the recent violent protest clashes in Buenos Aires and finally social projects run by Skaters in the Argentinian ghettos. In addition to my journalistic endeavours, I also practice parkour, a discipline I have cultivated over several years now. I love to make the most of this skill in my journalistic style; for example, it has enabled me to capture dynamic footage from heights during the recent violent clashes in Buenos Aires. There, I scaled heights and employed a long stick on my camera to create aerial 360° views. Through my dedication to pushing the boundaries of journalism, I am committed to amplifying voices, sparking meaningful conversations, and driving positive change in the world.

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