Microsoft’s AI investment in the UK brings positive developments

The Competition and Markets Authority (CMA) in Britain has announced that it will not be investigating the partnership between tech giant Microsoft and French artificial intelligence startup Mistral AI. Microsoft had invested $16 million in Mistral AI back in February, with the aim of bringing the company’s models to its Azure platform.

The decision by the CMA comes after weeks of inviting views on the tie-up, with the authority ultimately determining that the partnership did not meet the criteria for investigation under the market’s merger regulations. This news comes amidst the CMA also seeking information on other tech partnerships, including those between Microsoft and Inflection AI, as well as Amazon and Anthropic.

A spokesperson for the CMA stated, “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.” Microsoft also welcomed the decision, with a spokesperson emphasizing the importance of investment and partnerships in the AI economy.

European Union antitrust chief Margrethe Vestager, who has been closely monitoring Big Tech’s partnerships with AI startups, recently met with Mistral AI. Following the meeting, Vestager emphasized the need for vibrant competition in the AI sector.

Overall, the decision by the CMA not to investigate the Microsoft-Mistral AI partnership highlights the growing importance of AI collaborations in the tech industry and the regulatory scrutiny that comes with them.