OpenAI Competitor Mistral AI Pursues Millions In Funding, Aims At $5 Bn Valuation: Report
French AI startup Mistral AI is reportedly engaged in discussions with investors to secure several hundred million dollars in funding, aiming for a valuation of USD 5 billion, according to a report by The Information.
While the identities of the potential investors remain undisclosed, Mistral already boasts notable backers such as Andreessen Horowitz, Lightspeed Ventures, and tech giant Microsoft Corp. Microsoft's recent investment of USD 16 million in Mistral, coupled with a strategic partnership to deploy its AI models via the Azure cloud computing platform, underlines the confidence placed in Mistral's technology.
However, this partnership has drawn scrutiny from the European Union, where lawmakers are calling for an investigation into perceived monopolistic tendencies by Microsoft. The concern stems from the consolidation of power in the tech industry, raising questions about fair competition and market dynamics.
Despite being relatively nascent in revenue generation, Mistral made waves in December by securing an impressive USD 415 million in funding. This influx of capital propelled Mistral's valuation to EUR 2 billion at the time, signaling strong investor belief in its potential to disrupt the AI landscape.
Mistral's meteoric rise reflects the growing significance of AI in various industries and the intense competition among startups vying for dominance in this space. With the potential for further funding and a lofty valuation, Mistral is expected to accelerate its development efforts and expand its reach in the global AI market.
