AnyVision developed an AI-powered visual intelligence software for facial, body, and object recognition offerings.

The funding is being used to scale AnyVision's Touchless Access Control and Remote Authentication products.

Microsoft said the probe would center on determining whether AnyVision's applications of face, body, and object-recognition comply with Microsoft's ethical principles against facial recognition for mass surveillance.

The fund will invest up to $100 million in on-device AI startups, with a first investment in AnyVision, a tech company that focuses on object, facial and body recognition in mass crowd events.

The Series A funding round was led by German multinational Bosch, which also bought a 9 percent stake in AnyVision last month.