There has been an uproar in the European Union due to the deal Microsoft is having with French tech startup Mistral AI, as the lawmakers demand to investigate Microsoft.
Eyes have been on Microsoft since its partnership with ChatGPT-maker Open AI. The EU has been warning the tech giant moves, as its could be in violation of the competition rules set by the Union.
Shockingly to the lawmakers on Monday, when Microsoft publicly announced its €15 million investment in the tech startup and the company’s AI models would soon be live on Azure, its cloud computing platform.
Microsoft came out earlier to say its investment in Mistral is without stake. Then, the company came out to clarify that its investment would turn into stake during company’s next funding round. “Funding round” is when big tech companies invest in AI startups without putting a valuation.
In the last funding round of Mistral in December brought about investors such as Andreessen Horowitz and Lightspeed, Mistral was valued at €2 billion.
Microsoft getting the heat for its multi-billion dollar investment in Open AI during the fourth quarter of last year came out to shed light on the issue. The tech giant said its did not own a stake in the company and doesn’t have any control over it. Microsoft has also been under anti-trust scrutiny in the U.S. and EU over its access to Open AI profits and models.
The Mistral deal has the continent’s attention. The lawmakers have been consistently taking out the details of the bloc’s AI Act extensively.
The deal with Microsoft has raised doubts over the company’s motivations. Moreover, Mistral lobbied not to share all AI systems privately, as the company fear the EU strict laws would hinder the company chances from competing with tech giants in the United States.
A member of the European Parliament (MEP) who oversaw the drafting of the AI Act Brando Benefei said the situation and the lobbying from the French Startup just shows how their role is important on the safety of ‘General Purpose AI’.
What is emerging shows even more that it was good not to water down our ambition on the safety of GPAI (general purpose AI) models with systemic risks, following legitimate but strong lobbying from companies like Mistral,”
Brando said
Germany and Italy together with France are also making case for companies into generative AI models in order to protect European Startups from over regulation
Another MEP who also worked on the AI Act, Kim vam Sparrentak is not happy with the Mistral thingy.
That story seems to have been a front for American-influenced big tech lobby
The Act almost collapsed under the guise of no rules for ‘European champions’, and now look. European regulators have been played.”
Kim said
The French government was silent over the issue for a while. microsoft and Mistral AI also refused to react.
In addition, Alexandre Geese (MEP) said the Microsoft announcement needs answers from the Mistral and the French government. He said the investment by Microsoft needs investigation, as there is power and money involved
There is a concentration of money and power here like the world has never seen, and I think this warrants an investigation.”
Geese said
Europe director at Open Markets Institute, a non-profit organization that focuses on antitrust law, Max von Thun said the European Union needs to investigate the deal as soon as possible. He said the announcement discloses Mistral’s secret to disobey the AI Act.
“This announcement exposes as a farce Mistral’s efforts to derail the AI Act based on its status as a supposed ‘European champion’
Max von said
