⚖️ UK investigating Alphabet's Anthropic Acquisition

In partnership with

UK Competition Authority Probes Alphabet's Investment in Anthropic

The U.K.'s Competition and Markets Authority (CMA) has launched a formal investigation into Alphabet’s substantial investments in Anthropic, an AI startup. Alphabet, the parent company of Google, has poured billions into Anthropic, raising concerns about whether this qualifies as a "quasi-merger," a method used by tech giants to control promising young startups. This investigation follows Alphabet’s $300 million initial investment and subsequent $2 billion funding, part of a broader strategy to gain influence over Anthropic, which has also received backing from Amazon. The CMA is scrutinizing whether Alphabet's involvement harms competition.

Get your news where Silicon Valley gets its news 📰

The best investors need the information that matters, fast.

That’s why a lot of them (including investors from a16z, Bessemer, Founders Fund, and Sequoia) trust this free newsletter.

It’s a five minute-read every morning, and it gives readers the information they need ASAP so they can spend less time scrolling and more time doing.

Subscribe for free

Implications for Tech Startups in AI and Investments

The CMA's probe signals a growing regulatory focus on how Big Tech interacts with startups, particularly in the AI sector. Startups aiming to secure funding from major players like Alphabet or Amazon need to be aware of how such investments might attract regulatory scrutiny. Strategic investments by large corporations may trigger investigations if they are seen as potentially anti-competitive or creating market dominance. This is a warning to young tech firms that deals with industry giants could face regulatory hurdles, especially if the investment gives the larger company influence over the startup's business operations or technology use.

Navigating Regulatory Oversight as a Startup

For startups, particularly in the fast-moving AI sector, this news highlights the importance of understanding the competitive landscape when securing funding. As regulators increasingly scrutinize mergers, acquisitions, and significant investments, startups need to maintain operational independence and avoid entering into agreements that may raise anti-competition flags. Additionally, startups should anticipate potential delays in closing deals or regulatory interventions, especially when dealing with large corporate investors, and plan their fundraising and growth strategies accordingly. This CMA probe is a clear reminder that regulatory challenges are becoming a key factor in the tech investment ecosystem.

In addition to our newsletter we offer 60+ free legal templates for companies in the UK, Canada and the US. These include employment contracts, investment agreements and more

Newsletter supported by:

What else we’re snackin’

Apple’s recent $3T valuation has spurred a series of impressive raises among smartphone innovators — and ModeMobile’s pre-IPO offering¹ is no exception. It’s now live at $0.25/share — lock in up to 100% bonus shares² while the raise lasts.³

¹ Mode Mobile currently has no formal plans for an IPO.
² A minimum investment of $1,950 is required to receive bonus shares. 100% bonus shares are offered on investments of $9,950+.
³ Please read the offering circular and related risks at invest.modemobile.com. This is a paid advertisement for Mode Mobile’s Regulation A+ Offering.
Past performance is no guarantee of future results. Start-up investments are speculative and involve a high degree of risk. Those investors who cannot afford to lose their entire investment should not invest in start-ups. Companies seeking startup investment tend to be in earlier stages of development and their business model, products and services may not yet be fully developed, operational or tested in the public marketplace. There is no guarantee that the stated valuation and other terms are accurate or in agreement with the market or industry valuations. Further, investors may receive illiquid and/or restricted stock that may be subject to holding period requirements and/or liquidity concerns.
DealMaker Securities LLC, a registered broker-dealer, and member of FINRA | SIPC, located at 105 Maxess Road, Suite 124, Melville, NY 11747, is the Intermediary for this offering and is not an affiliate of or connected with the Issuer. Please check our background on FINRA's BrokerCheck.

and by: