The UK's Competition and Markets Authority (CMA) has launched a formal investigation into Alphabet's substantial investment in AI startup Anthropic, citing concerns over potential competition reduction. This move follows Alphabet's significant financial backing of Anthropic, including a $300 million investment last year and a further $2 billion commitment. The probe, described as a 'quasi-merger', highlights regulatory scrutiny over big tech's influence on smaller AI firms through strategic investments, while other investors like Amazon have not been similarly probed due to different agreement terms. The CMA has set a deadline of December 19, 2024, to decide on proceeding to a 'phase 2' investigation. Alphabet asserts that Anthropic can collaborate with various cloud providers and denies imposing exclusive demands on technology rights.