Paris start-up Mistral AI, founded by researchers from Meta and Google, has raised €385 million ($415 million) in funding for its artificial intelligence technology that powers online chatbots. The company’s valuation has increased to about $2 billion, and investors include Andreessen Horowitz and Lightspeed Venture Partners.
Mistral develops technology for businesses to deploy chatbots, search engines, and other AI-driven products. It is among the few companies building AI that could rival OpenAI’s technology. Mistral is also a proponent of open-source software, which allows others to build their own chatbots. However, rivals like OpenAI and Google argue that open-source AI poses risks.
Mistral’s success is seen as significant in France, where it is seen as an opportunity to challenge US tech giants. The company’s founders previously worked at Meta and Google, and believe in the open-source approach. Other start-ups, like Perplexity, have also received funding for their open-source AI initiatives.
Investors, including Andreessen Horowitz, believe that AI should be open to foster innovation. Mistral’s founders have expertise in large language models, and the company released its latest technology as open-source, similar to Meta’s LLaMA model.
Mistral’s technology is on par with Meta’s, and the company believes in the importance of sharing AI code to allow for collective review and improvement. Mistral’s open-source approach aims to build safer software through community collaboration.
Adam Satariano contributed reporting from London.