Microsoft

France had no prior knowledge of Microsoft’s Mistral AI deal, official says

Advertisement Business France had no prior knowledge of Microsoft’s Mistral AI deal, official says FILE PHOTO: A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, February 9, 2024. REUTERS/Gonzalo Fuentes/File Photo New: You can now listen to articles. Sorry, the audio is unavailable right now. Please try again later. This

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France had no prior knowledge of Microsoft’s Mistral AI deal, official says

France had no prior knowledge of Microsoft's Mistral AI deal, official says

FILE PHOTO: A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, February 9, 2024. REUTERS/Gonzalo Fuentes/File Photo


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28 Feb 2024 08:33PM
(Updated: 28 Feb 2024 10:17PM)



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LONDON :France had no prior knowledge of Microsoft’s partnership with tech startup Mistral AI, a finance ministry official told Reuters, denying suggestions that French lobbying for looser European AI rules had been on behalf of the U.S. tech giant.

Earlier this week, Microsoft said it had made a 15-million euro ($16 million) investment in Mistral, and would soon make the Paris-based company’s AI models available via its Azure cloud computing platform.

Following the announcement, a Microsoft spokesperson told Reuters it had invested in Mistral without taking a stake. Later, Microsoft clarified that its investment would convert into equity in Mistral’s next funding round, a common practice among big tech companies investing in AI startups.

Mistral and the French government had previously lobbied for looser regulations under the European Union’s wide-ranging AI Act, ostensibly to avoid over-regulating smaller startups.

Some EU lawmakers on Tuesday questioned whether Mistral had lobbied on Microsoft’s behalf, and the extent of the French government’s knowledge of the partnership.

“That story seems to have been a front for an American-influenced big tech lobby,” Kim van Sparrentak, an EU lawmaker who worked closely on the AI Act, told Reuters. “The Act almost collapsed under the guise of no rules for ‘European champions’, and now look. European regulators have been played.”

But the French government denied any prior knowledge of the agreement.

“Yesterday, we learned of the technological partnership between Mistral and Microsoft. It’s great news that a young French company has joined Microsoft’s previously exclusive partnership with OpenAI on its Azure platform,” a French finance ministry official told Reuters.

“France, like all other member states, took part in the writing the AI Act. At the time, we were not aware of this partnership project, but it has no specific consequences.”

On Wednesday afternoon, Mistral CEO Arthur Mensch said the company remained committed to its mission as an independent European company.

“We have a reselling agreement with Microsoft, that we’re very excited about,” he wrote on social media platform X. “Alongside similar partnerships, it will accelerate our growth.”

Microsoft did not immediately respond to requests for comment.

Source: Reuters

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Key Takeaways

  • Microsoft shareholders to vote on Bitcoin proposal as Michael Saylor pitches trillion-dollar opportunity.
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Michael Saylor, CEO of MicroStrategy, earlier today directed a post on X to Microsoft CEO Satya Nadella, suggesting that if Microsoft wants to add another trillion dollars in value for its shareholders, it should consider adding Bitcoin to its treasury.

Saylor’s comment follows Microsoft’s latest SEC filing, which outlines a shareholder proposal titled “Assessment of Investing in Bitcoin” set to be voted on during the company’s annual meeting in December.

Building on recent performance, MicroStrategy’s Bitcoin-heavy portfolio has led its stock to outperform Microsoft’s by 313% this year, despite the company’s relatively smaller scale in the tech industry.

Microsoft acknowledged this in their report, noting the significant gains some companies have made by holding Bitcoin.

Although they acknowledge Bitcoin’s recent outperformance, Microsoft’s board has advocated that shareholders vote against this proposal.

Microsoft voting form advising against Bitcoin proposal

In the filing, the board stated that conducting a Bitcoin investment assessment was unnecessary, emphasizing that Microsoft’s management “already carefully considers this topic.”

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While Microsoft acknowledges that Bitcoin has been considered in past assessments, its portfolio is currently dominated by US government securities and corporate bonds—a strategy aimed at stability and steady returns.

Microsoft’s caution aligns with the volatility associated with Bitcoin, a point they highlighted in the filing. They noted that assets for corporate treasury applications should be predictable and stable to support operations effectively.

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