Amazon’s AI partnership with Anthropic cleared by UK regulator
The United Kingdom‘s Competition and Markets Authority (CMA) has confirmed that Amazon’s $4 billion partnership with AI startup Anthropic will not be subject to a more in-depth investigation. The regulator determined that the deal did not raise competition concerns under Britain’s merger regulations.
Amazon expressed support for the CMA’s decision, noting that it acknowledged the regulator’s lack of jurisdiction over the collaboration. The CMA also cleared a similar partnership between Microsoft and Inflection AI, while a deal between Alphabet and Anthropic remains under review.
Anthropic, which was co-founded by siblings Dario and Daniela Amodei, former OpenAI executives, reiterated that its partnerships with major tech firms do not compromise its independence or governance. The startup has received billions in investments from several large companies.
Amid growing antitrust scrutiny of deals between startups and big tech firms, regulators are closely monitoring collaborations like those involving Anthropic and its partners.
US eases AI chip exports to Middle Eastern data centres
The United States Commerce Department has announced a new rule that could streamline the process for sending AI chips to data centres in the Middle East. The rule will allow data centres to apply for Validated End User (VEU) status, enabling them to receive AI chips through a general authorisation, eliminating the need for individual licences for each shipment.
The move follows concerns in Washington that Middle Eastern countries could act as intermediaries for China to acquire US chips that are restricted from direct export to China. G42, an AI company based in the United Arab Emirates with historical connections to China, has been at the centre of these concerns, despite its efforts to distance itself from China and comply with US regulations.
The VEU program will involve rigorous screening to ensure safeguards are in place to prevent the misuse or diversion of US technology. The Commerce Department emphasised the importance of this review process to protect national security.
The Bureau of Industry and Security reiterated its commitment to facilitating international AI growth while mitigating risks to US and global security, aiming to balance technological development with safety concerns.
Meta postpones joining EU AI Pact, focuses on compliance
Meta Platforms has announced it will not immediately join the European Union‘s voluntary AI Pact, which is a temporary initiative ahead of the AI Act coming into force. The company is currently focusing on compliance with the forthcoming regulations set out in the act, but may sign the pact at a later stage.
The EU’s AI Act, agreed in May and adopted by the European Council, will introduce strict rules governing the development and use of artificial intelligence. Under these regulations, companies must provide detailed summaries of the data used to train their AI models. The majority of the law’s provisions will take effect from August 2026.
In the interim, the AI Pact encourages companies to voluntarily adopt some of the key requirements of the forthcoming act. Meta has expressed its support for harmonised EU regulations but is prioritising work on meeting the obligations of the AI Act.
The AI Act will be part of a wider legislative framework, joining the Digital Markets Act, Digital Services Act, Data Governance Act, and Data Act, in shaping the future of digital regulation in the EU.
New California laws safeguard actors from AI exploitation
California Governor Gavin Newsom has signed two new bills into law aimed at protecting actors and performers from unauthorised use of their digital likenesses through AI. The following measures have been introduced in response to the increasing use of AI in the entertainment industry, which has raised concerns about the unauthorised replication of performer’s voices and images. The first bill mandates that contracts unambiguously specify the use of AI-generated digital replicas and requires professional representation for performers during negotiations.
The second bill restricts the commercial use of digital replicas of deceased performers. It prohibits their appearance in films, video games, and other media unless the performer’s estate gives explicit consent. These steps are crucial in safeguarding the rights of performers in a rapidly evolving digital landscape, where AI-generated content is becoming increasingly prevalent.
The legislative actions mentioned highlight widespread concerns about AI technology, not just in entertainment but across different industries. The increasing use of AI has raised worries about its potential to disrupt sectors, lead to job displacement, and even pose a threat to democratic processes. Although President Biden’s administration has advocated for federal AI regulations, Congress is split, which makes it challenging to enact comprehensive national-level legislation.
Musk denies xAI-Tesla collaboration claims on AI technology
The CEO of Tesla has denied claims that his AI startup xAI had entered discussions to share future Tesla revenue in exchange for giving the automaker access to its technology. The Wall Street Journal reported that Tesla was considering licensing xAI’s artificial intelligence models to enhance its full self-driving software and splitting revenue with the startup.
Musk refuted the report, stating that although Tesla had benefited from conversations with xAI engineers, there was no need to license any technology. He called the article ‘not accurate’ in a post on social media platform X.
The Journal’s report suggested that xAI could also help Tesla develop other features, such as a voice assistant for its electric vehicles and software for its humanoid robot, Optimus. Musk has previously mentioned that xAI could play a role in advancing Tesla’s self-driving capabilities and building a new data centre.
The billionaire launched xAI last year to rival OpenAI, with plans to integrate its AI chatbot, Grok, into Tesla’s systems. Discussions have reportedly taken place regarding a potential $5 billion investment in xAI by Tesla.