Upcoming quarterly reports from U.S. tech giants may show Microsoft is closing the gap on cloud-computing market leader Amazon.com as more businesses switch to its services, attracted by a clutch of generative AI features that are powered by OpenAI's technology.

British competition regulators say they’ll scrutinize recent artificial intelligence deals by Microsoft and Amazon over concerns that the moves could thwart competition in the AI industry.

Amazon.com Inc’s $4 billion investment into artificial intelligence firm Anthropic is facing the prospect of an in-depth UK antitrust probe, a week after the agency warned of Big Tech’s “interconnected web” of deals into the booming market.

Microsoft is predicted by Rishi Jaluria of RBC Capital Markets to overtake Amazon's market share. According to Jaluria, cloud providers should generally profit from indications that technology investment, which has been under pressure from rising interest rates and unstable economic conditions, is stabilizing.

The U.K.’s Competition and Markets Authority has begun a preliminary investigation into whether Microsoft Corp and Amazon.com Inc.’s relationship with a number of AI startups breach the country’s merger rules.

Britain's competition watchdog said on Wednesday it was seeking comments on the AI partnerships between Microsoft and Mistral AI, as well as between Amazon and Anthropic. The Competition and Markets Authority also said it wanted to hear the views of third parties on Microsoft's hiring of former employees of Inflection AI and related arrangements.

U.K. regulators said they are looking into AI partnerships made by Amazon and Microsoft amid concerns they could hurt competition. The U.K.'s Competition and Markets Authority (CMA) has asked for input from third parties about how the deals might impact the AI market.

Tech giants confident everything's in order UK regulators want to hear from "interested third parties" on whether Microsoft and Amazon's investments in AI startups is impeding competition.… The Competition and Markets Authority (CMA) has issued a call for views concerning the two megacorps' various deals and strategic decisions amid the ongoing lurch for AI leadership.