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Sources: Mistral AI raising at a $6B valuation, SoftBank 'not in' but DST is | TechCrunch

May 09, 2024 - techcrunch.com
Paris-based AI startup Mistral AI, which focuses on open source Large Language Models, is raising funds at a $6 billion valuation, three times its valuation in December. Investors DST, General Catalyst, and Lightspeed Venture Partners are reportedly interested in participating in the round, which is expected to be less than $600 million. However, SoftBank, which has been linked to Mistral in previous reports, is not currently involved in the deal. Mistral's valuation has increased from a $5 billion target in just a few weeks, indicating a heated market for AI startups.

Meanwhile, SoftBank is reportedly looking to invest in more AI deals, despite not participating in Mistral's funding round. The firm has recently led a $1 billion funding round for Wayve and is considering buying UK-based AI chip designer Graphcore. Graphcore, which has been struggling in a market dominated by Nvidia, is speculated to sell for between $500 million and $600 million, significantly less than its last fundraise at a $2.8 billion valuation.

Key takeaways:

  • Mistral AI, a Paris-based startup working on open source Large Language Models, is raising money at a $6 billion valuation, three times its valuation in December, to compete against OpenAI and Anthropic.
  • DST, General Catalyst, and Lightspeed Venture Partners are all looking to be a part of this funding round, which is set to be around, but less than, $600 million.
  • Despite reports, SoftBank is not currently involved in the deal with Mistral AI, but is keen on getting into more AI deals, as evidenced by its recent activities.
  • SoftBank is reportedly considering buying the troubled UK AI chip designer, Graphcore, which is facing financial difficulties despite having raised hundreds of millions of dollars from investors in the past.
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