UK's CMA rejects probe into Microsoft-Mistral AI tie-up

FILE PHOTO: A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 25, 2024. REUTERS/Gonzalo Fuentes/File Photo

LONDON (Reuters) -Britain's competition watchdog said on Friday it would not investigate the partnership between Microsoft and Mistral AI, weeks after it invited views on the tie-up.

In February, Microsoft invested $16 million in Mistral AI, partnering to make the French start-up's artificial intelligence models available through its Azure platform. It has also invested in ChatGPT owner OpenAI.

The Competition and Markets Authority (CMA) said the Mistral partnership did not qualify for investigation under Britain's merger regulations.

"The CMA has considered information submitted by Microsoft and Mistral AI, together with feedback received in response to its invitation to comment," a CMA spokesperson said.

"Based on the evidence, the CMA does not believe that Microsoft has acquired material influence over Mistral AI as a result of the partnership and therefore does not qualify for investigation."

The CMA in April sought comments on the partnership, as well as separate links between Microsoft and Inflection AI and a tie-up between Amazon and Anthropic.

A Microsoft spokesperson said: "Investment and partnership are essential to new players in the AI economy.

"We welcome the CMA's determination that our fractional investment and partnership with Mistral AI does not qualify as a merger or acquisition."

European Union antitrust chief Margrethe Vestager, who has been looking into Big Tech's partnerships with AI start-ups, met Mistral AI last month. "We need vibrant competition in AI, now," she wrote on X after the meeting.

(Reporting by Paul Sandle in London and Eva Mathews in Bengaluru; Editing by Shinjini Ganguli and Chizu Nomiyama)

Follow us on our official WhatsApp channel for breaking news alerts and key updates!


Next In Tech News

Users will have control over generative AI in Windows
Will your device support Apple Intelligence?
Gamers really are better drivers, a new survey reveals
From schoolwork to relationship advice: why might young people use an AI chatbot?
OpenAI CEO says company could become benefit corporation- The Information
Google loses bid to end US antitrust case over digital advertising
Apple, Meta set to face EU charges under landmark tech rules, sources say
New York recovers $50 million for defrauded Gemini Earn crypto investors
Tempus AI shares jump 8% in strong Nasdaq debut as US IPO market thaws
Meta pauses AI models launch in Europe due to Irish request

Others Also Read