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Microsoft made a $16 million investment in Mistral AI | TechCrunch

Feb 27, 2024 - news.bensbites.co
Paris-based AI startup, Mistral AI, has announced a new large language model, a chat assistant, and a distribution partnership with Microsoft. As part of the partnership, Microsoft is investing €15 million ($16.3 million) in Mistral AI, which will convert into equity in the startup's next funding round. The investment does not change the valuation of Mistral AI, which reached about $2 billion after its most recent funding round in December 2023. If the valuation remains the same in the next round, Microsoft will own less than 1% of the French AI company.

Mistral AI also unveiled its flagship large language model, Mistral Large, designed to compete with models like GPT-4 and Claude 2. Unlike previous releases, Mistral Large is not open source and can be accessed through Mistral’s API platform. The distribution partnership with Microsoft will allow Mistral AI to attract more customers via Azure, and Azure customers can access Mistral’s models through Azure’s model catalog. This new investment from Microsoft, which is also an investor in OpenAI, is likely to attract the attention of the European Commission.

Key takeaways:

  • Mistral AI, a Paris-based AI startup, announced a new large language model and a distribution partnership with Microsoft. As part of the partnership, Microsoft is investing €15 million ($16.3 million) in Mistral AI.
  • The investment will convert into equity in Mistral’s next funding round, and Microsoft’s percentage stake will depend on the valuation of the next funding round. Mistral AI reached a valuation of about $2 billion following its most recent funding round in December 2023.
  • Mistral AI unveiled Mistral Large, its flagship large language model designed to rival other top-tier models. Unlike previous releases, Mistral Large isn’t open source and can be accessed through Mistral’s own API platform.
  • Mistral AI and Microsoft also signed a distribution partnership deal for Azure, which will likely attract more customers and allow Azure customers to access Mistral’s models through Azure’s model catalog. This investment puts Microsoft as an investor in both OpenAI’s capped profit subsidiary and Mistral AI.
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