Microsoft Partners with French AI Firm Mistral, Faces EU Scrutiny

Ronik
By Ronik | 2 min read
Last updated: February 27, 2024
Microsoft Partners with French AI Firm Mistral, Faces EU Scrutiny

February 27th, 2024: Microsoft Corporation has entered into a strategic partnership with Mistral AI, a French startup that stands as OpenAI’s primary European competitor.

Announced on February 27, 2024, this collaboration aims to bring Mistral’s latest artificial intelligence models to Microsoft Azure customers, enhancing the diversity and accessibility of AI technologies.

Mistral AI, known for developing algorithmic models similar to those of OpenAI but with a focus on open-source sharing, has recently introduced a model named Mistral Large.

mistral ai founders

This model boasts unique reasoning abilities and proficiency in five languages, marking a significant advancement in the AI field.

Microsoft’s investment in Mistral, although undisclosed, signifies a strong commitment to supporting a variety of AI technologies, both proprietary and open-source.

This partnership emerges as Microsoft faces increasing scrutiny from regulatory bodies globally due to its close ties with OpenAI.

With substantial investments totaling approximately $13 billion in OpenAI, Microsoft’s strategy has notably contributed to the latter’s emergence as a significant tech industry competitor.

However, this has also led to antitrust investigations by the European Union and the UK, questioning the independence and competitive practices of these collaborations.

In light of these challenges, Microsoft has articulated its “AI Access Principles” at the Mobile World Congress in Barcelona, pledging to make AI tools and models widely available to foster competition.

This is part of a broader initiative by Microsoft, which includes a substantial €5.6 billion investment in European data centers to support the region’s digital infrastructure.

Mistral, founded in early 2023 by ex-engineers from Google’s DeepMind and Meta Platforms Inc., has quickly positioned itself as a European contender in the AI domain.

A recent funding round in December valued the company at approximately $2 billion, highlighting its rapid growth and potential to challenge US dominance in AI technology.

The European Union’s executive commission has announced that it is closely examining the Microsoft-Mistral partnership as part of a broader review of the generative AI market.

This scrutiny aims to ensure that the agreement does not hinder competition, maintaining a balanced and innovative AI ecosystem. As regulatory eyes closely watch this partnership unfold, the tech world eagerly anticipates the impact of this collaboration on the future of artificial intelligence.

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