This situation arises amid increased antitrust scrutiny of Google, which has faced multiple legal challenges, including a recent $50 million settlement over racial bias.

Antitrust enforcers have suggested various actions against Google, such as sharing search data with competitors and discontinuing payments to companies that designate Google as the default search engine.

Despite a decline in Google's search market share from nearly 90% in 2020 to around 80% today, the company remains a significant player in retrieval augmented search (RAG), which combines AI with traditional search methods.

The U.S. Department of Justice (DOJ) is proposing measures to enhance competition against Google's online search capabilities, which AI startup Anthropic warns could negatively impact investments in artificial intelligence.

This scrutiny follows a ruling by U.S. District Judge Amit Mehta, who determined in August 2024 that Google holds an illegal monopoly in the online search market.

Anthropic argues that without Google's partnerships and investments, the AI landscape may become dominated by a few large tech companies, potentially limiting options for developers and users.

Google's business connection to Anthropic is underscored by its minority stake in the startup, valued at billions of dollars.

A Google spokesperson criticized the DOJ's proposals as excessive, arguing they could harm consumers, the economy, and national security.

The increasing focus on regulating large tech firms raises significant questions about the future of AI development and investment in the United States.

In March 2025, the DOJ retracted a proposal to force Google to divest its AI investments but continues to seek a court order for Google to sell its Chrome browser, reflecting ongoing concerns about monopolistic practices.

Tech industry groups, including Engine Advocacy and TechNet, have expressed support for Anthropic's position against the DOJ's proposals in a court brief.

Google has countered the DOJ's proposals by asserting that making its agreements non-exclusive is a more effective strategy to promote competition in AI.