UK Watchdog Probes Microsoft, Amazon AI Partnerships and Hiring Practices

The Competition and Markets Authority (CMA) in the United Kingdom has launched an inquiry into the artificial intelligence (AI) partnerships between Microsoft and Mistral AI, Amazon and Anthropic, and Microsoft’s hiring of former Inflection AI employees. The CMA is inviting public comments by May 9th, 2023, as part of its initial information-gathering process. The regulator has not yet determined if the deals violate UK merger regulations or raise antitrust concerns. The CMA also noted that it is reviewing earlier feedback on Microsoft’s partnership with OpenAI and awaiting additional information from the involved companies.

The CMA’s investigation forms the first part of its information-gathering process and precedes the initiation of a formal investigation. The regulator seeks to gather public views on the potential impact of the partnerships and hiring practices on competition in the UK AI market. The CMA’s review includes Microsoft’s partnership with Mistral AI, which focuses on developing AI solutions for the financial services industry. Amazon’s partnership with Anthropic, a research company founded by former OpenAI researchers, is also under scrutiny. Additionally, the CMA is examining Microsoft’s hiring of former Inflection AI employees, a company specializing in AI-powered text summarization and analysis.

The CMA’s inquiry highlights the growing attention paid to the competitive landscape of the AI sector. Regulators worldwide are scrutinizing AI-related mergers and partnerships to ensure they do not stifle innovation or harm consumers. The CMA’s findings and any subsequent actions could have significant implications for companies operating in the UK AI market and serve as a precedent for other regulatory bodies.

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