Cédric O as French Minister for Tech (2022): ‘We need more regulation’.
Cédric O as Mistral AI shareholder (2023): ‘EU’s AI Act could kill our company’
A textbook case of revolving doors at the heart of the EU AI Act?
Cédric O, close advisor to French President Emmanuel Macron and co-founder of his political party, used to be France's minister in charge of the tech sector until mid 2022.
Until 2022, as minister he argued that "we need more regulation" on tech companies. As he stated at VivaTech 2021, France’s largest tech conference, Cédric wanted to rein in the American big tech "oligopoly" to “protect the public interest”.
In 2022, at a tech conference in New York, his position was: “As far as I’m concerned, we need more regulation. So if the price to pay is to have a different framework in the U.S. and the EU, I would go for that.”
His tune suddenly changed by mid 2023, just after becoming a shareholder and part of the "founding team" of Mistral, a new AI startup that raised 105M after 4 weeks of existence with a 7-pages Google doc as investor pitch.
Soon after, he started declaring in interviews: ‘EU's AI Act could kill our company’.
Ironic, given that it was the French government that pushed for the inclusion of general-purpose AI models, foundation models, in the AI Act in 2022, against the complaints of Big Tech companies and their allies.
And not too long after his tune changed, so did the tune of some key French officials and ex-colleagues of his in the government.
This culminated in an unprecedented, last-minute u-turn on November 10 where France and Germany demanded a total “exemption” of foundation models from the AI Act. This obstruction prevented the Council from reaching any coherent position. As a result, negotiators from the European Parliament literally walked out of the room in disbelief. No one expected this.
Following this unexpected backstab, France is now leading an initiative to fully "exempt" foundation models from the AI Act. This move comes after France itself led the inclusion of these influential models in the Act.
This would be akin to a Climate Act that "exempts" oil production, refinement and distribution from regulation, with the excuse that only cars emit CO2.
It is unfortunately common for former government officials to leverage their network, in order to help some companies avoid regulation.
But very rarely you get to witness a clear display of crony capitalism, through such a blatant attack on democratic institutions: France is literally trying to destroy the AI regulation it pushed for in the first place, as soon as an ex-Minister invests in some new startup!