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AI Startup Anthropic claims Google Search remedies undermine competition and innovation

Anthropic, a leading AI startup, has filed a motion in the Google Search antitrust case—raising alarm about the sweeping remedies sought by the Department of Justice (DOJ). Anthropic is known for its “Claude” language models that directly compete with Google’s Gemini and OpenAI’s ChatGPT.

The motion opposed the DOJ’s proposed remedies in the Google Search case, calling them an unjustified overreach that could significantly harm AI competition and innovation.

A windfall for large, well-established competitors

Anthropic was “blindsided” by the DOJ’s proposal, noting that the original lawsuit had “nothing to do with AI” and that when it was filed, “Anthropic did not even exist.”​ It noted that Google’s investments in Anthropic or even AI in general “were never part of this case” until the DOJ filed its remedies proposal.

The company argues that these sudden AI-related restrictions would hurt competition and innovation in AI​. These proposed measures would create an “unjustified windfall” for larger, well-established AI players such as OpenAI’s ChatGPT, China’s DeepSeek, and “ironically Google itself, which (through its DeepMind subsidiary) markets an AI language model, Gemini.”​ According to Anthropic, severing Google’s investment ties with AI companies would not protect smaller startups but instead “benefit larger and better-funded rivals” who already dominate the industry​.

The startup’s filing makes it clear:

— “A remedy that requires Google to terminate its relationship with Anthropic would harm both Anthropic and competition more generally.”​

Stifling innovation and harming American competitiveness abroad

The DOJ’s proposal would force Google to sell its stake in AI companies, leading to rushed sales, market volatility, and undercut funding for startups. Cutting off a critical source of investment would not enhance competition—it would reduce it. Google’s funding has been a catalyst for AI startups and removing this support would leave them vulnerable to financial instability. According to Anthropic, these forced divestitures would create “concrete and imminent injury,” making it harder for them to compete and innovate​.Furthermore, the DOJ’s proposed remedies could inadvertently stifle American AI progress at a crucial point​. As previously highlighted, the emergence of China’s DeepSeek has heightened concerns about global AI competition. DeepSeek’s rapid ascent underscores China’s growing competitiveness in AI. Its ability to produce advanced models with limited resources—approximately $6 million compared to hundreds of millions for U.S. large language models (LLMs)—has been described as a “Sputnik moment” for China and its potential to rival U.S. technological leadership​. Weakening American innovation in AI through forced Google divestiture is shortsighted and will undercut American leadership in this rapidly growing sector.

AntitrustChoice and CompetitionCompetition In TechDOJregulation

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