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Google may have to sever ties with AI startup Anthropic due to proposed antitrust restrictions on its search dominance.
Google’s grand plans for pushing ahead in the AI arms race could be facing a major setback. The tech giant may have to sever ties with one of the hottest AI startups around if a proposed antitrust settlement goes through.
In a court filing this week, the US Justice Department recommended that as part of a deal to resolve its landmark antitrust case against Google over online search dominance, the company should be prohibited from “acquiring, investing in or collaborating” with firms that offer competitive search or query-based AI products.
Bloomberg reports that the provision appears aimed at Google’s partnership with Anthropic. Just last year, Google pledged a massive $2 billion investment in the startup, gaining non-voting shares and consultation rights.
The Justice Department proposal shows antitrust regulators are serious about restricting Big Tech’s ability to buy their way into dominance of emerging tech sectors.
Google, for its part, has already pushed back hard against the idea of being forced to divest assets like Chrome, which the DOJ filing also proposed. In a blog post, Google warned such remedies would “jeopardize America’s global economic and technological leadership.”
Surprisingly, this news comes after the UK’s antitrust watchdog provided some relief for the company. The Competition and Markets Authority concluded earlier this week that the company’s investment in Anthropic didn’t warrant further review under merger rules.
It’s worth mentioning that Amazon’s recent $4 billion Anthropic investment also drew scrutiny over similar competition concerns. But that didn’t stop the company from announcing a second $4 billion investment this Friday, taking the total investment to $8 billion – though it will remain a minority investor.
