The UK’s competition watchdog has launched an investigation into Microsoft’s cloud computing services partnership with Anthropic, an artificial intelligence startup. The Competition and Markets Authority (CMA) said it will examine whether the deal may lessen competition in markets related to cloud computing services, including AI products like ChatGPT. The investigation will consider if the deal increases the companies’ ability and incentive to exercise market power in connected markets where they compete with rivals. Microsoft and Anthropic have not offered any concessions to address potential concerns, prompting the CMA’s probe. The CMA has until August 23 to make its initial decision on whether the deal raises competition concerns. If it finds issues, it could require changes or block the deal entirely.