UK Clears Amazon's AI Partnership with Anthropic

The logo of Amazon is seen on the door of an Amazon Books retail store in New York City, US, February 14, 2019. REUTERS/Brendan McDermid
The logo of Amazon is seen on the door of an Amazon Books retail store in New York City, US, February 14, 2019. REUTERS/Brendan McDermid
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UK Clears Amazon's AI Partnership with Anthropic

The logo of Amazon is seen on the door of an Amazon Books retail store in New York City, US, February 14, 2019. REUTERS/Brendan McDermid
The logo of Amazon is seen on the door of an Amazon Books retail store in New York City, US, February 14, 2019. REUTERS/Brendan McDermid

Britain's competition regulator said on Friday Amazon's artificial intelligence partnership with startup Anthropic will not be referred for a deeper probe as it did not raise competition concerns.

The Competition and Markets Authority said the partnership, which includes a $4 billion investment by Amazon in Anthropic, did not qualify for investigation under Britain's merger regulations.

"We welcome the UK's Competition and Markets Authority (CMA) decision acknowledging its lack of jurisdiction regarding this collaboration," an Amazon spokesperson said in response to the regulator's decision, according to Reuters.

The regulator has also cleared a similar collaboration between Microsoft and Inflection AI.

However, Alphabet's partnership with Anthropic is still under scrutiny.

"Anthropic is an independent company and our strategic partnerships and investor relationships do not diminish our corporate governance independence or freedom to partner with others," an Anthropic spokesperson told Reuters on Friday.

Anthropic, which was co-founded by former OpenAI executives and siblings Dario and Daniela Amodei, has received billions of dollars in investments from several tech giants.

Antitrust regulators around the world have increasingly raised concerns over multiple deals struck between smaller industry startups and big tech companies.



Google, Volkswagen Partner on Smartphone AI Assistant

People walk next to a Google logo during a trade fair in Hannover Messe, in Hanover, Germany, April 22, 2024. (Reuters)
People walk next to a Google logo during a trade fair in Hannover Messe, in Hanover, Germany, April 22, 2024. (Reuters)
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Google, Volkswagen Partner on Smartphone AI Assistant

People walk next to a Google logo during a trade fair in Hannover Messe, in Hanover, Germany, April 22, 2024. (Reuters)
People walk next to a Google logo during a trade fair in Hannover Messe, in Hanover, Germany, April 22, 2024. (Reuters)

Alphabet’s Google is providing key capabilities for an artificial intelligence assistant for Volkswagen drivers in a smartphone app, part of Google's strategy to win business by offering tools to build enterprise AI applications.

Consumers can ask Volkswagen's in-app assistant questions like "How do I change a flat tire?" or point their phone cameras at vehicle dashboards to receive relevant information.

The AI assistant draws on Google's Gemini large language models, programs that can understand and generate predictive responses to human language, and cloud computing capacity. The VW tool was designed by adding data such as Volkswagen owner’s manuals and YouTube videos on vehicle maintenance to Gemini.

Google Cloud CEO Thomas Kurian told Reuters that the product required overcoming technical hurdles to multimodality, the ability to process different data types such as text, images and videos.

"The problem looks superficially simple, but it’s technically very complex," Kurian said. "Most people think what we built is a speech-to-text translation system that then looks up a manual. Absolutely not."

The AI assistant is free and available to about 120,000 owners of Volkswagen’s Atlas and Atlas Cross Sport models. It will roll out by early next year to other cars from model year 2020 and later.

Corporate adoption of generative AI could alter the lucrative cloud computing market, where Google places third in terms of market share behind Amazon and Microsoft . Most companies are still searching for applications that users will find practical.

Cloud computing is a growing business segment for Google, accounting for $33 billion of the firm's $307 billion in overall revenue in 2023.

AI solutions have driven billions in revenue this year, the company has said, though it declined to disclose more precise figures.

Volkswagen declined to give details about usage for its AI assistant so far.