Microsoft's partnership with Mistral raises lobbying concerns in the EU

Microsoft has partnered with French AI startup Mistral, sparking concerns about potential conflicts of interest and the influence of big tech companies on European Union regulations.

The partnership involves a $16 million investment from Microsoft and will see Mistral’s AI models offered on Microsoft’s Azure cloud platform. This move mirrors a similar partnership Microsoft has with OpenAI.

However, the deal has raised eyebrows among some EU lawmakers, who question whether France lobbied for looser AI regulations to benefit Mistral and Microsoft. The French government has denied any prior knowledge of the partnership.

Lobbying means attempting to influence the decisions or policies of government officials or bodies.

The lobbying concerns

• Mistral AI and the French Government had previously advocated for less restrictive regulations within the EU’s AI Act. They argued to avoid excessive constraints on smaller startups and allow innovation to flourish.
• After announcing the Microsoft-Mistral partnership, some EU lawmakers raised concerns that Mistral’s lobbying efforts might have been secretly motivated to benefit Microsoft’s interest in the AI market.
• The suspicion is that Mistral lobbied for looser regulations that would ultimately pave the way for its partnership with Microsoft to have fewer roadblocks.
• EU lawmaker Kim van Sparrentak believes that European regulators were misled into adopting less strict regulations, potentially under the guise of supporting European tech companies, without realizing larger American tech interests were at play.

While Mistral’s CEO emphasizes the company’s commitment to independence and is excited about the partnership’s growth potential, the incident highlights the ongoing debate surrounding tech companies, governments, and the development of responsible AI regulations.

Why does this matter?

• This situation highlights potential conflicts of interest between tech companies and the government bodies regulating them.
• It showcases the complex power dynamics when major corporations attempt to influence laws that could impact their business.
• The incident raises questions about transparency and the need to balance innovation and regulation in the rapidly evolving field of AI.

More here.