Microsoft’s Merger With Mistral AI Encounters Scrutiny Amid Looming EU Elections

In the follow-up of Microsoft’s recent deal with Mistral AI, a French AI services company, the merger appears to be facing heightened scrutiny in the EU amid looming European Parliamentary elections. After the two announced plans to strategically merge forces as of Monday, February 26, the newly cracked deal faced hurdles with the EU’s wide-ranging AI act today, February 27, according to a report.

Meanwhile, as the global race for AI paces daily, the scrutiny witnessed by Microsoft and Mistral AI may potentially impact the entities’ positioning in the global race. Meta, on the other hand, appears to be advancing with its venture into AI, as the firm revealed plans to aid in tackling AI abuse in the upcoming EU elections. This intensifies the heat between the two rivals, as developing AI now comes to the forefront of tech development.

EU’s AI Act Births Hindrances For Microsoft’s Deal

According to a Microsoft spokesperson, the firm has made a staggering €15 million investment in Mistral AI. This investment could potentially turn into equity in the next funding round, provided that the EU’s AI acts don’t cause such hindrances.

Mistral concurrently advocates for looser rules orbiting some AI models, claiming that such strict rules might hamper the nation’s companies’ functioning and competitiveness. However, the European Commission proclaimed to scope-in on the Microsoft-Mistral merger, aligning with its AI act and ongoing scrutiny of AI partnerships nationwide. Notably, the EU already warned Microsoft that its ties to OpenAI may be subject to EU merger rules.

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EU’s Upcoming Election & Stance On AI

As the European Parliament elections loom over to be conducted in June, the nation appears to be cracking down further on AI abuse, specifically on generative AI and its immense applications. Intriguingly, Meta, another key entity in AI, recently unveiled plans to set up a team to counter AI abuse in the upcoming EU elections.

This move stages Meta as a notable rival for Microsoft and Mistral as the two face hindrances while Meta continues to pioneer. Brando Benefei, a member of the European Parliament, further stated that the emerging evidence further reinforces the crux of maintaining the nation’s stance on ensuring the safety of GPAI models despite Mistral’s lobbying efforts.

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