Amazon faces UK scrutiny over AI deal with startup Adept
The CMA is scrutinising Amazon’s acquisition of key figures from AI startup Adept, reflecting wider concerns about Big Tech’s influence on AI partnerships and competition.
The UJK Competition and Markets Authority (CMA) has requested further details from Amazon regarding its recent acquisition of leading executives and researchers from AI startup Adept. This move aligns with the CMA’s wider review of partnerships between major tech companies and AI startups, reflecting growing concerns about how these deals are structured.
Amazon announced last month that Adept’s CEO, David Luan, and other key figures were joining the company, with the deal also including the licensing of some of Adept’s technology. While informal, the inquiry highlights the CMA’s interest in ensuring fair competition within the AI sector. Amazon’s aim is to catch up with rivals such as Google and Microsoft in developing advanced language models.
Founded in 2022, Adept secured over £400 million in venture capital and was once valued at over £1 billion. Despite its promising beginnings, the company struggled to launch successful commercial products. The financial arrangements between Amazon and Adept remain unclear. The CMA is also investigating similar deals, such as Microsoft’s recruitment of leadership from another AI startup, Inflection AI.
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