Microsoft announced a strategic partnership with French startup, Mistral AI, a leading competitor of OpenAI in Europe, on February 27, 2024. The American multinational technology company’s goal is to bring Mistral’s cutting-edge AI models to its Azure customers, diversifying and enhancing the accessibility of AI technologies.
Known for developing algorithmic models similar to those of OpenAI, Mistral AI is popular for its focus on open-source sharing. The French startup has recently launched a model named “Mistral Large,” which has superior reasoning abilities and proficiency in five languages. This introduction of Mistral Large marks a landmark leap in the sphere of artificial intelligence.
Microsoft’s undisclosed investment in Mistral reflects the tech giant’s dedication to amplifying the range of AI technologies, inclusive of both proprietary and open-source. Moreover, Microsoft’s alliance with Mistral comes at a crucial time when the company is facing increasing scrutiny from international regulatory bodies due to its strong association with OpenAI. Microsoft’s strategy, which included substantial investments amounting to nearly $13 billion in OpenAI, played a significant role in positioning OpenAI as a salient competitor in the tech industry.
However, the potent alliance also ignited antitrust investigations by regulatory bodies like the European Union and the UK, scrutinizing the autonomous nature and competitive practices of these collaborations. Despite these hurdles, Microsoft unveiled its “AI Access Principles” at the Mobile World Congress in Barcelona, vowing to make AI tools and models extensively accessible to instigate competition, which comes as part of a more comprehensive initiative by Microsoft.
Launched in early 2023 by ex-engineers from mega tech companies like Google’s DeepMind and Meta Platforms Inc., Mistral has managed to rapidly position itself as a key player in the European AI market. The company’s latest funding round saw the firm valued at nearly $2 billion, underlining its swift growth and potential to confront US preeminence in AI technology.
Furthermore, the European Union’s executive commission declared that it is inspecting the Microsoft-Mistral alliance as a component of a broader review of the generative AI segment. This investigation aims at ensuring that the partnership doesn’t obstruct competition while preserving a balanced and innovative AI environment. As the industry awaits the impact of this collaboration on AI’s future, regulatory bodies around the globe are keeping a close watch on the developments of this partnership.
Thus, Microsoft’s foray into a partnership with Mistral can be seen as a significant contributor in democratizing AI technology, despite regulatory scrutiny and competitive challenges. The industry now waits to see the resulting impact on AI’s future development and its implications on global markets.
