Microsoft Corp.’s investment in Mistral AI will be analyzed by the European Union’s competition watchdog at the same time as its deep relationship with OpenAI Inc. will come under regulatory scrutiny.
Mistral announced a “strategic partnership” with Microsoft on Monday. This includes making the company’s latest artificial intelligence models available to Microsoft’s Azure cloud customers. Microsoft said the investment amounted to 15 million euros ($16.3 million).
Mistral develops algorithmic models similar to OpenAI’s algorithmic models used for chatbots and other AI services, but Mistral models are openly shared. Microsoft’s investment will be converted into equity as part of Mistral’s next funding round.
Microsoft did not respond to requests for comment. Mistral AI declined to comment.
In the field of artificial intelligence, Microsoft primarily works with OpenAI, investing about $13 billion in the California startup. The relationship is currently under the scrutiny of UK and EU regulators.
A European Commission spokesperson said on Tuesday that the regulator would analyze Microsoft’s investment in Mistral AI after receiving a copy of the agreement. The move could ultimately lead to a formal investigation and undermine Microsoft’s plans.
