The European Union has initiated an investigation into Microsoft’s recent partnership with French startup Mistral AI, intensifying its scrutiny of the burgeoning generative artificial intelligence sector. The 27-nation bloc’s executive commission announced on Tuesday that it is closely examining the agreement between the tech giant and Mistral AI, raising the possibility of competition concerns.
In a brief statement, the commission revealed its intention to include the Microsoft-Mistral AI deal in its broader review of the generative AI market. The focus of this examination extends beyond individual agreements to encompass the relationships between digital tech giants and developers/providers in the generative AI landscape.
Microsoft, in a move to diversify its sources for generative AI products, disclosed on Monday its collaboration with Mistral AI through a substantial 15 million euro ($16 million) investment in the French startup. Mistral AI, a company established less than a year ago, is positioned to play a pivotal role in reducing Microsoft’s reliance on OpenAI, the creator of ChatGPT, for the development of the next wave of chatbots and other generative AI solutions.
As the EU’s top antitrust enforcer, the commission is broadening its review to include major deals in the generative AI sector. Last month, Microsoft’s multibillion-dollar deal with San Francisco-based OpenAI came under scrutiny, with the possibility of a formal merger investigation looming. Microsoft has chosen to remain silent on the matter, while Mistral AI has yet to respond to requests for comments on the EU investigation.