AI Act

everything-tech-giants-will-hate-about-the-eu’s-new-ai-rules

Everything tech giants will hate about the EU’s new AI rules

AI, AI Act, AI risks, AI safety, AI training, Artificial Intelligence, copyright infringement, European Union, Google, Meta, microsoft, openai, piracy, Policy / /

The code also details expectations for AI companies to respect paywalls, as well as robots.txt instructions restricting crawling, which could help confront a growing problem of AI crawlers hammering websites. It “encourages” online search giants to embrace a solution that Cloudflare is currently pushing: allowing content creators to protect copyrights by restricting AI crawling without impacting search indexing.

Additionally, companies are asked to disclose total energy consumption for both training and inference, allowing the EU to detect environmental concerns while companies race forward with AI innovation.

More substantially, the code’s safety guidance provides for additional monitoring for other harms. It makes recommendations to detect and avoid “serious incidents” with new AI models, which could include cybersecurity breaches, disruptions of critical infrastructure, “serious harm to a person’s health (mental and/or physical),” or “a death of a person.” It stipulates timelines of between five and 10 days to report serious incidents with the EU’s AI Office. And it requires companies to track all events, provide an “adequate level” of cybersecurity protection, prevent jailbreaking as best they can, and justify “any failures or circumventions of systemic risk mitigations.”

Ars reached out to tech companies for immediate reactions to the new rules. OpenAI, Meta, and Microsoft declined to comment. A Google spokesperson confirmed that the company is reviewing the code, which still must be approved by the European Commission and EU member states amid expected industry pushback.

“Europeans should have access to first-rate, secure AI models when they become available, and an environment that promotes innovation and investment,” Google’s spokesperson said. “We look forward to reviewing the code and sharing our views alongside other model providers and many others.”

These rules are just one part of the AI Act, which will start taking effect in a staggered approach over the next year or more, the NYT reported. Breaching the AI Act could result in AI models being yanked off the market or fines “of as much as 7 percent of a company’s annual sales or 3 percent for the companies developing advanced AI models,” Bloomberg noted.

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Microsoft partners with OpenAI-rival Mistral for AI models, drawing EU scrutiny

AI, AI Act, Biz & IT, chatgpt, chatgtp, EU AI Act, EU regulation, france, French AI models, French models, GPT-4, GPT-4-turbo, large language models, machine learning, Mistral, Mistral Large, openai / /

The European Approach —

15M euro investment comes as Microsoft hosts Mistral’s GPT-4 alternatives on Azure.

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Velib bicycles are parked in front of the the U.S. computer and micro-computing company headquarters Microsoft on January 25, 2023 in Issy-les-Moulineaux, France.

On Monday, Microsoft announced plans to offer AI models from Mistral through its Azure cloud computing platform, which came in conjunction with a 15 million euro non-equity investment in the French firm, which is often seen as a European rival to OpenAI. Since then, the investment deal has faced scrutiny from European Union regulators.

Microsoft’s deal with Mistral, known for its large language models akin to OpenAI’s GPT-4 (which powers the subscription versions of ChatGPT), marks a notable expansion of its AI portfolio at a time when its well-known investment in California-based OpenAI has raised regulatory eyebrows. The new deal with Mistral drew particular attention from regulators because Microsoft’s investment could convert into equity (partial ownership of Mistral as a company) during Mistral’s next funding round.

The development has intensified ongoing investigations into Microsoft’s practices, particularly related to the tech giant’s dominance in the cloud computing sector. According to Reuters, EU lawmakers have voiced concerns that Mistral’s recent lobbying for looser AI regulations might have been influenced by its relationship with Microsoft. These apprehensions are compounded by the French government’s denial of prior knowledge of the deal, despite earlier lobbying for more lenient AI laws in Europe. The situation underscores the complex interplay between national interests, corporate influence, and regulatory oversight in the rapidly evolving AI landscape.

Avoiding American influence

The EU’s reaction to the Microsoft-Mistral deal reflects broader tensions over the role of Big Tech companies in shaping the future of AI and their potential to stifle competition. Calls for a thorough investigation into Microsoft and Mistral’s partnership have been echoed across the continent, according to Reuters, with some lawmakers accusing the firms of attempting to undermine European legislative efforts aimed at ensuring a fair and competitive digital market.

The controversy also touches on the broader debate about “European champions” in the tech industry. France, along with Germany and Italy, had advocated for regulatory exemptions to protect European startups. However, the Microsoft-Mistral deal has led some, like MEP Kim van Sparrentak, to question the motives behind these exemptions, suggesting they might have inadvertently favored American Big Tech interests.

“That story seems to have been a front for American-influenced Big Tech lobby,” said Sparrentak, as quoted by Reuters. Sparrentak has been a key architect of the EU’s AI Act, which has not yet been passed. “The Act almost collapsed under the guise of no rules for ‘European champions,’ and now look. European regulators have been played.”

MEP Alexandra Geese also expressed concerns over the concentration of money and power resulting from such partnerships, calling for an investigation. Max von Thun, Europe director at the Open Markets Institute, emphasized the urgency of investigating the partnership, criticizing Mistral’s reported attempts to influence the AI Act.

Also on Monday, amid the partnership news, Mistral announced Mistral Large, a new large language model (LLM) that Mistral says “ranks directly after GPT-4 based on standard benchmarks.” Mistral has previously released several open-weights AI models that have made news for their capabilities, but Mistral Large will be a closed model only available to customers through an API.

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