Amazon AI deal leaves ‘zombie’ start-up in its wake, whistleblower says

Amazon AI deal leaves ‘zombie’ start-up in its wake, whistleblower says
washingtonpost.com

by Joseph Menn • 22 days ago

A whistleblower has filed a complaint alleging that Amazon's $400 million license deal with Covariant AI is a disguised acquisition that should face antitrust scrutiny. The complaint claims Amazon structured the deal to evade regulatory oversight, effectively turning Covariant into a "zombie" company with limited market potential. The case has raised concerns about Big Tech's methods of consolidating power and stifling competition in the AI sector, prompting investigations from U.S. regulators.

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