Yesterday, Mistral AI, a Paris-based AI startup engaged on foundational fashions, introduced a brand new giant language mannequin that would rival OpenAI’s GPT-4, a chat assistant and a distribution partnership with Microsoft yesterday. However Microsoft and Mistral AI buried the information — or at the least an necessary half.
As a part of the partnership, Microsoft is investing €15 million within the French startup ($16.3 million at right this moment’s change fee). Microsoft says that this funding will convert into fairness in Mistral’s subsequent funding spherical.
It implies that the valuation of Mistral AI isn’t altering following this funding. Microsoft’s share stake within the AI startup may also depend upon the valuation of the subsequent funding spherical.
Mistral AI reached a valuation of about $2 billion following its most up-to-date funding spherical in December 2023. On the time, the corporate raised €385 million (round $415 million) with Andreessen Horowitz (a16z) main the funding spherical. The corporate had beforehand raised a $112 million seed spherical only a few weeks after its inception.
If Mistral AI can at the least keep its valuation throughout its subsequent funding spherical, it implies that Microsoft will personal lower than 1% in fairness within the French AI firm.
Yesterday, Mistral AI unveiled Mistral Massive, its flagship giant language mannequin that has been designed to rival different top-tier fashions, comparable to GPT-4 and Claude 2. In contrast to earlier Mistral AI releases, Mistral Massive isn’t open supply. Builders can entry the mannequin by means of Mistral’s personal API platform.
Mistral AI and Microsoft additionally signed a distribution partnership deal for Azure. In consequence, Mistral AI will probably entice extra prospects with this new distribution channel.
It additionally implies that Azure prospects can entry Mistral’s fashions by means of Azure’s mannequin catalog. Clients who wish to stay within the Microsoft ecosystem have an alternative choice along with OpenAI’s fashions. Meta’s Llama fashions are additionally obtainable on Azure.
With this funding, Microsoft is now an investor in OpenAI’s capped revenue subsidiary and Mistral AI. Microsoft’s relationship with OpenAI is beneath scrutiny from EU and UK regulators.
This new funding will probably entice the eye of the European Fee. That’s why Microsoft didn’t make a giant deal about it. As for Mistral AI, the so-called European AI champion seems increasingly more like its American rivals with a closed-source method and an extended record of American backers.
