In a surprising move, Microsoft recently announced a €15 million investment in Paris-based Mistral AI, a French tech startup. However, this partnership has raised eyebrows in the European Union (EU), prompting lawmakers to demand an investigation into what they perceive as a concentration of power by the tech giant.
Investment Details:
- Microsoft invested €15 million in Mistral AI.
- The investment will convert into equity during Mistral’s next funding round.
- Mistral was last valued at €2 billion in a previous funding round.
Azure Integration:
- Microsoft plans to make Mistral’s AI models available via its Azure cloud computing platform.
- This move aims to enhance Azure’s capabilities and expand its AI offerings.
Antitrust Scrutiny:
- Antitrust authorities are already examining Microsoft’s partnership with ChatGPT-maker OpenAI.
- The European Commission has warned that this relationship could breach EU competition rules.
- The Mistral deal adds to the scrutiny, as it involves another significant investment in AI.
Lobbying and Exemptions:
- Behind closed doors, Mistral lobbied for exemptions for certain AI systems.
- Mistral argued that overly strict laws would hinder European startups’ ability to compete with US-based tech giants.
- Some lawmakers question Mistral’s motivations and its alignment with Microsoft.
European Champions:
- France, alongside Germany and Italy, pushed for exemptions to protect European generative AI models.
- Critics suggest that this lobbying may have been influenced by American tech interests.
- The EU’s wide-sweeping AI Act is still under discussion, and Mistral’s actions have drawn attention.
Microsoft’s investment in Mistral AI has ignited debates about power dynamics, competition, and the future of AI regulation in the EU. As the tech landscape evolves, lawmakers remain vigilant, ensuring a balance between innovation and safeguarding European interests.
