Alphabet’s Google has been permitted to retain its investments in AI startups, including Anthropic, following a revision of the US Department of Justice’s (DOJ) antitrust proposal.

The initial proposed final judgment (IPFJ) filed in November 2024, which could have forced Google to divest its AI interests, has been modified to avoid potential unintended consequences in the AI sector.

In a court filing, the Justice Department has dropped its earlier demand for Google to sell off its stakes in AI companies, which was aimed at bolstering competition in online search.

Instead, the company will now need to notify antitrust enforcers prior to any further AI investments, allowing for a review of such transactions.

However, the department’ remainder proposed remedy including a forced sale of the Chrome web browser remains largely unchanged.

The revised proposal comes after a federal judge ruled that Google had illegally monopolised online search and search advertising markets.

Google spokesman Peter Schottenfels was quoted by Bloomberg as saying that the department’s “sweeping proposals continue to go miles beyond the Court’s decision, and would harm America’s consumers, economy and national security”.

With a trial scheduled for next month to determine appropriate remedies, the Justice Department continues to express concerns over Google’s influence in the AI industry.

Apple, which benefits from its contract with Google, has also opposed the Justice Department’s proposals. The tech giant reportedly earns up to $20bn a year from this agreement.