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French AI start-up Mistral AI raises £500M in funding

Written by Thu 13 Jun 2024

In a Series B funding round, Paris-based artificial intelligence (AI) start-up Mistral AI raised £500.9 million ($640 million), reaching a valuation of £4.6 billion ($6 billion).

Led by General Catalyst, this new funding comes at a time when AI firms are seeing considerable interest as a great deal of potential is seen in this space by investors.

With high profile investors, including Microsoft and NVIDIA, Mistral is positioning itself to challenge dominant leaders in the AI space like OpenAI. Investors in the latest round include Industry heavyweights such as Lightspeed, Andreessen Horowitz, IBM, and Salesforce.

In a LinkedIn post by the company, the basic details of the funding round were shared.

“We are announcing €600M in Series B funding for our first anniversary. We are grateful to our new and existing investors for their continued confidence and support for our global expansion. This will accelerate our roadmap as we continue to bring frontier AI into everyone’s hands,” said Mistral in the post.

In February, Microsoft entered a commercial partnership with Mistral and invested £12.6 million ($16.1 million) into the company, as well as offering Mistral products in its Azure cloud computing platform. Despite being slightly older than one year-old, the French firm has already raised hundred of millions of dollars from some of the largest technology organisations in the world.

This funding marks the biggest investment, outside of the US, in a start-up that is focused on establishing major general purpose AI models. Regulators in the European Union and UK have already announced a probe into Mistral, due to concerns around if investments into the French firm from large organisations like Microsoft could be considered an acquisition.

While the European Commission has not finished their investigation, the UK’s Competition and Markets Authority dropped its investigation recently.

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Written by Thu 13 Jun 2024

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