E.U. Competition Watchdog to Scrutinize Microsoft’s Mistral AI Investment

Posted on February 27, 2024 by Business Today

The European Union’s competition watchdog is set to examine Microsoft Corp.’s investment in Mistral AI, while also investigating the tech giant’s deep connections with OpenAI Inc. This move comes as regulatory scrutiny continues to surround Microsoft’s involvement in the AI industry.

Mistral recently announced a strategic partnership with Microsoft, which includes providing the startup’s latest AI models to customers of Microsoft’s Azure cloud. The investment by Microsoft amounts to €15 million ($16.3 million). Mistral specializes in developing algorithmic models similar to those used by OpenAI for chatbots and other AI services, but Mistral’s models are openly shared. Microsoft’s investments will be converted into equity during Mistral’s next funding round.

At this time, Microsoft has not responded to requests for comment, and Mistral AI has declined to make any statement. The tech giant has predominantly collaborated with OpenAI, having invested approximately $13 billion in the California-based startup. However, regulators in the U.K. and E.U. are now closely examining this relationship.

In response to Microsoft’s investment in Mistral AI, the European Commission spokesperson revealed that regulators will thoroughly analyze the agreement. This evaluation may potentially lead to a formal investigation, jeopardizing Microsoft’s future plans.

Stay tuned to Business Today for further updates on the outcome of this scrutiny.

This article was originally published on Business Today on February 27, 2024.