The U.K.'s Competition and Markets Authority (CMA) will not investigate Microsoft's partnership with Mistral AI.

Mistral AI, a French startup, received a $16 million investment from Microsoft.

The CMA concluded that the partnership does not meet the criteria for a full investigation under the Enterprise Act.

The decision marks the end of the inquiry process, determining no threat to competition in the UK market from the partnership.

Microsoft emphasizes the importance of investment and partnerships for fostering innovation in the AI economy.

European Union antitrust chief Margrethe Vestager highlights the significance of competition in the AI sector.

The CMA had previously sought comments on partnerships between tech giants and AI startups as part of a broader investigation.