French Startup Mistral AI Raises $640M
Mistral AI secures $640 million in funding, tripling its valuation to $6 billion, aiming to rival top AI models like GPT-4 and Claude 3.
Mistral's latest funding includes $502 million in equity and $141 million in debt. Major investors in this Series B round are General Catalyst and Lightspeed Venture Partners. CEO Arthur Mensch thanked the investors, saying, “We are grateful for the confidence and support, which will accelerate our roadmap and global expansion.” Researcher Devendra Chaplot highlighted the company’s growth, noting, “Mistral AI has grown ~3x in valuation since December and ~25x in the last year!”
Founded in April 2023 by former Meta and Google’s DeepMind staff, Mistral AI aims to develop models to rival GPT-4, Claude 3, and Llama 3. The company has released several models, including Mistral 7B and Mistral 8x22B, under an open-source license. Their most advanced models, like Mistral Large, are proprietary and offered as API-first products.
Mistral AI also offers a free chat assistant, Le Chat, and a coding model, Codestral, with a restrictive license. In June 2023, the startup raised $113 million from a founding round led by Lightspeed Venture Partners shortly after its launch. Former French minister Jean-Nöel Barrot praised this achievement, saying, “Congratulations to Mistral AI for raising €105 million just a month after its creation: a record!”
Investors are optimistic about AI startups like Mistral AI. A McKinsey survey shows that 67% of respondents expect to increase AI investments in the next three years. However, businesses are aware of the risks, such as data privacy, bias, IP infringement, and inaccurate outputs.
KPMG experts suggest that blockchain could address these risks by providing a secure way to track and manage IP. Blockchain can ensure proper attribution and royalties for reused content, reducing IP misappropriation risks. Companies could use NFTs with smart contracts to store IP on a blockchain, preventing unauthorized data use and ensuring proper credit or compensation. Leveraging blockchain technology can help companies benefit from AI while mitigating associated risks.
Mistral AI’s substantial funding and plans to compete with leading AI models mark a significant advancement for the French startup. With strong investor backing and innovative strategies, Mistral AI aims to become a key player in the AI industry, addressing generative AI challenges through technologies like blockchain.
