Italy closes antitrust probes into AI firms after commitments on ’hallucination’ risks

Italy’s antitrust regulator (AGCM) closed investigations on April 30, 2026 into three AI firms—China’s DeepSeek, France’s Mistral AI and Turkey’s Scaleup—after the companies made binding commitments to address so-called “hallucination” risks in generative AI. Commitments include adding permanent disclaimers on chatbot services, clearer user warnings, DeepSeek investing in hallucination-reduction technology, and Scaleup clarifying that its NOVA AI interface does not aggregate or process chatbot responses. The resolution reduces immediate regulatory uncertainty around smaller AI providers and may be modestly supportive for broader AI and cloud-exposed tech stocks by signaling a pragmatic, compliance-focused approach from European regulators.