Artificial Intelligence

Microsoft, after OpenAI comes Mistral: the race for artificial intelligence continues

The Nadella-led company invests in the French start-up that is considered the European flagship in Gen AI

2' min read

2' min read

The more than $13 billion already invested in OpenAI is not enough. Microsoft wants to further consolidate its steps in the field of generative artificial intelligence, and to do so it has decided to also invest in Mistral AI, the French start-up founded less than a year ago that is considered somewhat of a European flagship in the sector.

The agreement was announced by Mistral AI today, Monday 26 February, and is intended to involve Microsoft in helping to bring artificial intelligence models developed in France to market. From a financial point of view, the American giant will acquire a stake in the company, which is based in Station F in Paris.

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The partnership makes Mistral the second company to provide commercial language models available on Microsoft's Azure cloud computing platform. The first, as is well known, is OpenAI, a Californian company that produces the popular ChatGPT.

"Microsoft's confidence in our model is a step forward in our journey to put frontier artificial intelligence in everyone's hands," said Arthur Mensch, co-founder and CEO of Mistral AI.

Hands on OpenAI

It should be remembered that Microsoft has already invested some USD 13 billion in OpenAI. This alliance is now under scrutiny by the various antitrust authorities and has generated quite a few discussions over the past year, especially when the Sam Altman case exploded, with the CEO first removed and then recalled to the helm of OpenAI. On that occasion, there was a clear feeling that Microsoft's hands on OpenAI are quite firm, with the ceo in close collaboration with Satya Nadella.

What Mistral AI does

Mistral builds large-scale language models, the technology behind generative artificial intelligence products. And it secured a valuation of EUR 2 billion in December in a funding round worth around EUR 400 million. Its models are 'open source', a feature in stark contrast to that of OpenAI, whose latest model (GPT-4) is considered a kind of black box in which the data and code used to build the model are not available to third parties.

The three founders of Mistral - which in June 2023 kicked off one of the largest seed rounds ever for a European company - have previous experience in the same industry: Timothée Lacroix, 31, and Guillaume Lample, 32, have both worked at Facebook, while Arthur Mensch, 30, is a former employee of DeepMind (of Google).

The basic idea for Mistral was to release its own Gen AI platform during 2024. And today, with Microsoft's investment, the hypothesis seems very concrete.

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