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EU to Scrutinize Microsoft’s Investment in Mistral AI Amid AI Market Competition Probe

 |  March 4, 2024

In the ever-evolving landscape of artificial intelligence (AI) development and investment, the European Union (EU) has taken a significant step forward in its scrutiny of major players in the industry. The EU has announced plans to closely analyze Microsoft’s recent investment in the French AI startup, Mistral AI, as part of its ongoing investigation into competition within the AI market.

This move comes after the European Commission initiated an investigation on January 9th, delving into the impacts of agreements between prominent AI companies and their potential effects on market competition. In its initial announcement, the Commission disclosed that it had already reached out for information from several key digital entities, with Microsoft singled out as a primary subject of interest.

The European Commission’s focus on Microsoft stems from its intention to assess whether Microsoft’s investment in OpenAI, another major player in the AI arena, might fall under the purview of EU Merger Regulation. OpenAI, renowned for its creation of ChatGPT, has solidified Microsoft’s position as a frontrunner in the AI sector.

Read more: Microsoft Offers To Charge For Teams In EU To Appease Watchdog

A spokesperson representing the European Commission stated to Investopedia that they would be thoroughly examining the agreement between Microsoft and Mistral AI. The Commission emphasized its particular interest in scrutinizing agreements struck between prominent digital market entities and developers/providers of generative AI technologies.

Microsoft’s collaboration with Mistral AI, announced on Monday, marks a significant stride in its AI ventures. The multi-year partnership is geared towards infrastructure development, scaling efforts, and research and development (R&D) initiatives in the realm of AI.

Source: Investiopedia