Tech Giants' AI Investments Under Scrutiny
UK regulators are considering whether Microsoft and Amazon's investments in AI startups could impede competition. Both companies' strategies and deals are placed under scrutiny amid their bid for AI dominance.
This comes from the Competition and Markets Authority's request for “interested third parties” to express their views about Microsoft and Amazon's investments in AI startups. Specifically, the investigation zeroes in on Amazon's partnership with Anthropic and Microsoft's agreement with Mistral AI as well as its engagement with Inflection AI.
The competition watchdog aims to determine if such market moves fall within UK merger rules and their potential impact on competition within the UK. The probe's development comes after Microsoft procured a $16.4 million stake in a French start-up and hired Inflection's CEO this March.
Similarly, Amazon is also being examined by the US Federal Trade Commission over its AI dealings. Amazon's investment inspection by the CMA will be its first in Europe. The company finalised its $4 billion investment in Anthropic last month, on top of an initial $1.25 billion in September 2023.
The question to the readers is: What are your thoughts on the watchdog’s scrutiny over Microsoft and Amazon's AI investment? Is it stifling innovation or fostering fair competition?
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