Highlights

• Microsoft’s deal with Mistral AI faces EU scrutiny amid concerns of monopolistic practices.
• Lawmakers call for investigation, citing previous concerns over Microsoft’s partnership with OpenAI.
• Microsoft’s 15 million euro investment in Mistral prompts questions about its intentions and competition impact.
• Initial statements by Microsoft are clarified, revealing plans for equity conversion in Mistral’s next funding round.
• Mistral’s lobbying for exemptions under the EU’s AI Act raises suspicions about its alignment with big tech.
• European Parliament members voice concerns over tech industry concentration, call for investigations into Mistral’s dealings.
• Advocacy groups urge EU regulators to scrutinize the partnership, questioning Mistral’s credibility as a ‘European champion.’
• Debate underscores the challenge of balancing innovation with competition amidst concerns over tech monopolies.

European Union lawmakers are demanding an investigation into Microsoft’s collaboration with French Tech startup Mistral AI, citing concerns over potential monopolistic behavior and the growing dominance of the tech giant. This move follows heightened scrutiny of Microsoft’s ties with OpenAI, raising questions about its influence in the AI sector and its impact on competition.

Microsoft’s recent investment in Mistral AI, valued at 15 million euros, has stirred controversy among EU lawmakers, prompting calls for a closer examination of the tech giant’s activities. This investment, initially portrayed as non-controlling, has sparked concerns about Microsoft’s motives and its implications for market competition.

The European Commission had previously cautioned that Microsoft’s partnership with OpenAI could violate EU competition rules. With Microsoft’s involvement with Mistral AI, lawmakers are now concerned about further consolidation of power in the AI industry.

Mistral AI, valued at 2 billion euros in its latest funding round, has actively lobbied for exemptions for certain AI systems under the EU’s AI Act. This lobbying effort has raised suspicions among lawmakers about Mistral’s alignment with the interests of major tech companies.

European Parliament members have voiced apprehension over the concentration of power in the tech sector, particularly in light of Microsoft’s collaboration with Mistral AI. Some MEPs have called for an investigation into Mistral’s activities and the involvement of the French government in negotiations.

Advocacy groups like the Open Markets Institute have urged EU regulators to swiftly scrutinize the partnership between Microsoft and Mistral AI. They argue that Mistral’s claims as a ‘European champion’ are undermined by its association with Microsoft, questioning its credibility and advocating for regulatory oversight.

As discussions on tech regulation continue, the EU faces the challenge of striking a balance between fostering innovation and ensuring fair competition in the AI market.