EU probes Microsoft’s investment in French AI startup
LONDON, UNITED KINGDOM and BRUSSELS, BELGIUM — Microsoft’s recent investment in Mistral AI, a French technology startup, caught the attention of the European Union, raising concerns over potential antitrust issues.
The tech giant’s €15 million ($16 million) investment in Mistral, aimed at integrating the startup’s AI models into Microsoft’s Azure cloud computing platform, sparked a debate on the concentration of power within the tech industry.
The European Commission, already examining Microsoft’s partnership with ChatGPT-maker OpenAI, views this new investment as a possible breach of EU competition rules. It also raised concerns among EU lawmakers and antitrust authorities.
Microsoft’s strategy of investing in AI startups without initially taking equity, a move that allows the tech giant to bypass valuation processes, has particularly drawn scrutiny.
The deal has reignited discussions in Brussels about the EU’s AI Act, with lawmakers questioning the motivations behind Mistral’s lobbying for exemptions for certain AI systems. The fear is that such exemptions could weaken the EU’s stance on the safety of general-purpose AI models with systemic risks.
This concern is compounded by the fact that France, Germany, and Italy have pushed for these exemptions to protect European startups like Mistral from stringent regulations.
Both Microsoft and Mistral AI declined to comment on the EU’s scrutiny. However, the investment is seen as part of Microsoft’s broader strategy to dominate the emerging AI market, leveraging its cloud computing platform to distribute cutting-edge AI models developed by startups like Mistral.
The European Commission’s investigation into Microsoft’s cloud computing practices, prompted by complaints from smaller rivals, highlights the broader antitrust challenges facing big tech companies in Europe. The investigation underscores the EU’s commitment to preventing the concentration of power and ensuring a competitive and innovative digital market.
