✨ Mistal AI Shows Its Strength Again
posted 11 Jun 2024
French artificial intelligence company Mistal AI has secured €600 million in a new funding round, bringing its valuation to €6 billion. Major investors include General Catalyst, BNP Paribas, Andreessen Horowitz, and others, with €468 million in equity and the remainder in debt.
Previously, the company received €15 million in funding from Microsoft, one of its main competitors, but Microsoft did not participate in this round. Remarkably, Mistal AI achieved these numbers in just one year, making this the largest deal in the history of AI companies outside Silicon Valley.
We were told when we started . . . that this is a market that is never going to be disrupted. We showed that this wasn’t the case and we effectively disrupted the OpenAI business model,- stated Mistral CEO Arthur Mensch.
The company's developers attribute much of their success to their open-source approach, which attracts investors more than closed projects. Additionally, Mistal AI has managed its resources efficiently, reportedly spending only a few tens of millions on training models, excluding chip costs.
Investors commend Mistal AI for its low expenditure and high output. French President Emmanuel Macron recently lauded the company as an exemplary European business. Such investments are on the rise, with major companies also investing in their own data centers.
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