Microsoft's recent collaboration with French tech startup Mistral AI is drawing attention from the European Union (EU), raising concerns about potential implications. The deal, announced on Monday by Microsoft, entails making Mistral's AI models accessible through Microsoft's Azure cloud computing platform, alongside a significant investment in the startup.

Although Microsoft confirmed a 15 million euro investment in Mistral AI, emphasizing its intention to convert it into equity in the startup's next funding round, the arrangement has triggered scrutiny in Brussels. Mistral's lobbying efforts during negotiations over the EU's AI Act, advocating for relaxed regulations for certain AI models, have added to the complexity of the situation.

The European Commission disclosed its plan to analyze the Microsoft-Mistral deal as part of its ongoing monitoring of big tech's AI collaborations. This scrutiny aligns with the EU's commitment to ensuring compliance with regulations and safeguarding European companies' competitiveness in the tech industry.

Brando Benefei, a member of the European Parliament involved in drafting the AI Act, underscored the importance of maintaining strong regulatory standards, particularly regarding AI models with systemic risks. He emphasized the need for thorough investigation into the emerging developments surrounding the Microsoft-Mistral agreement.

Both Microsoft and Mistral AI refrained from providing comments on the matter, leaving room for further examination and deliberation on the potential implications of their collaboration.