Paris-based AI startup Mistral AI is nearing a valuation of $2 billion, as it wraps up a funding round that includes investments from industry giants Nvidia and Salesforce, according to sources familiar with the matter. The deal, which also includes backing from Andreessen Horowitz, sees Mistral raise approximately €450 million ($487 million). Of this, over €325 million is expected to come in the form of equity from investors led by Andreessen Horowitz, with Nvidia and Salesforce contributing an additional €120 million in convertible debt. Mistral’s founders and key insiders are also expected to sell shares as part of the deal.
Founded by former scientists from Google’s DeepMind and Facebook’s Meta Platforms, Mistral specializes in open-source software for chatbots and other generative AI tools. The company positions itself as a lower-cost and more efficient alternative to American competitors. Mistral’s rise has been rapid, with the company attracting significant attention and funding. In June, the startup raised an impressive $113 million in its initial funding round, making it one of Europe’s most prominent AI startups.
The latest valuation of $2 billion is remarkable for a company that is less than a year old and underscores the current optimism in the tech industry about the potential profitability of AI companies. Mistral’s software serves as the backbone for various AI applications, requiring substantial computing resources. The company’s expertise in language models aligns with the offerings of OpenAI, the renowned artificial intelligence research lab led by Sam Altman.
As Mistral secures significant backing from renowned investors, including Nvidia, Salesforce, and Andreessen Horowitz, it positions itself as a fierce competitor to OpenAI in the global AI landscape. With this latest funding round, the startup intends to further expand its operations and solidify its position as a leading AI player, both in Europe and beyond.
