Written by Martin Coulter and Fu Yun Chi
LONDON/BRUSSELS (Reuters) – Microsoft’s deal with French tech startup Mistral AI has sparked a backlash in the European Union, with lawmakers demanding an investigation into what they see as a concentration of power by the tech giants. There is.
Antitrust authorities are already considering a partnership between Microsoft and ChatGPT developer OpenAI, and the European Commission previously warned that the relationship between the two companies could violate EU competition rules.
But on Monday, lawmakers were stunned when Microsoft announced it had invested 15 million euros ($16 million) in Paris-based Mistral and would soon make its AI models available via its Azure cloud computing platform. did.
A Microsoft spokesperson told Reuters that the investment does not represent Mistral stock, but will be converted into equity in the company’s next funding round.
Late last year, when Microsoft faced regulatory pressure over its multibillion-dollar investment in OpenAI, it made it clear that it doesn’t actually own any shares in the company and therefore can’t control it. And so.
The agreement with Mistral has once again raised eyebrows in Brussels. Last year, lawmakers spent months hammering out the details of the bloc’s broad AI law.
Mr. Mistral has privately lobbied for exemptions for some AI systems, warning that overly strict laws would hinder opportunities for European startups to compete with U.S.-based giants. Mistral’s deal with Microsoft has some lawmakers questioning the company’s motives.
“The new revelations, following legitimate but strong lobbying from companies like Mistral, require us not to weaken our ambitions regarding the safety of GPAI (general purpose AI) models that carry systemic risks. “This further shows that we have a lot to offer,” said Brando Benefei, a member of the group. The European Parliament (MEP) oversaw the drafting of the AI Act.
European champion?
Like Germany and Italy, France sought exemptions for companies that make generative AI models to protect European startups such as Mistral from overregulation.
“That story appears to have been a front for the big US-influenced tech lobbies,” said Kim Van Spalentak, a member of Congress who worked closely on the AI law. “This law almost collapsed in the name of having no rules for ‘European champions’. Now look, European regulators were at their mercy.”
A third member of parliament, Alexandra Guise, told Reuters the announcement raised legitimate questions about the French government’s actions during negotiations with Mistral.
“There is a concentration of money and power here that the world has never seen before, and I think this needs to be investigated.”
The French government did not respond to requests for comment.
Microsoft and Mistral AI declined to comment.
Max von Thun, European director of the Open Market Institute, a non-profit organization focused on strengthening antitrust laws, said the EU should move quickly to investigate the partnership.
“This announcement exposes as a farce that Mistral is attempting to derail AI legislation based on its position as ‘European Champion’.”
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(Reporting by Martin Coulter and Foo Yun Chee; Editing by Kirsten Donovan and Emelia Sithole-Matarise)
