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Key Takeaways
- The European Union said it will analyze Microsoft’s investment in artificial intelligence (AI) startup Mistral AI as part of an investigation into competition within the AI market.
- The EU launched an investigation into the effects of agreements between companies leading the AI space and their effects on competition on Jan. 9.
- The development comes as Microsoft’s other AI-related partnerships, particularly its OpenAI partnership, have drawn scrutiny from lawmakers in the EU, U.K., and U.S. due to competition concerns.
The European Union (EU) said it will analyze Microsoft’s (MSFT) investment in French artificial intelligence (AI) startup Mistral AI as part of an ongoing investigation into competition within the AI market.
The European Commission launched an investigation into the impacts of agreements between large AI players and their impact on the market and competition on Jan. 9, reporting that it had “sent requests for information to several large digital players.”
The Commission specifically named Microsoft as a company of interest, saying that it is “checking whether Microsoft’s investment in OpenAI might be reviewable under the EU Merger Regulation.”
A spokesperson told Investopedia that the Commission will analyze the Microsoft and Mistral AI agreement as it “is looking into agreements that have been concluded between large digital market players and generative AI developers and providers.”
Microsoft announced its multi-year partnership with Mistral AI focused on infrastructure, scaling, and AI research and development (R&D) on Monday.
The tech giant has established itself as an AI leader with its partnership with ChatGPT maker OpenAI, which drew attention from the Competition and Markets Authority (CMA) in the U.K. at the end of 2023, and the Federal Trade Commission (FTC) in the U.S. in January of 2024.
Microsoft shares were 0.5% lower at $405.64 as of about 11:35 a.m. ET Tuesday. The company’s stock has gained more than 62% in the past year.