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GenAI race: French OpenAI rival Mistral AI snaps €468M at €5.8B valuation

Mistral AI
Picture credits: Mistral AI

Mistral AI, an influential AI startup based in Paris, has reportedly closed €468 million equity funding round, reaching a valuation of €5.8 billion. This round brings the total investment raised by the company to €600 million, including debt.

The round was led by new investor DST Global and existing backer General Catalyst (which invested in Factorial and Hippocratic AI), according to the sources. 

The announcement comes less than a year after raising $415 million in a Series A funding round led by A16z and at a $2B valuation.

Disrupts the GenAI space

Mistral AI was founded by DeepMind and Meta alumni – Arthur Mensch, Timothée Lacroix, and Guillaume Lample. Its founders have experience working on large language models similar to those developed by OpenAI. It has emerged as an European competitor to popular US tech companies like OpenAI.

Deal with Microsoft 

In February this year, Mistral AI signed a distribution deal with Microsoft. As a part of this deal, the US tech giant took a stake in the French unicorn. The company prioritises multilingual AI and its latest model is fluent in five languages – French, English, German, Spanish and Italian.

Taps into the GenAI market

The generative AI market is anticipated to reach a staggering $100 billion by 2030, driven by the increasing demand for AI-powered solutions capable of automating tasks, generating creative content, and personalising user experiences. Generative AI holds the potential to revolutionise various industries, from healthcare and education to finance and manufacturing.

Competitive landscape

Mistral AI operates within a competitive landscape that includes established players such as OpenAI, Google AI, and DeepMind. However, Mistral AI’s open-source approach and focus on high-performance, scalable LLMs differentiate it from its competitors.

Nevertheless, Mistral AI’s this particular round of funding stands as a testament to Europe’s flourishing generative AI ecosystem, which is rapidly gaining traction and attracting global attention.

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