While generative AI has been a long time in the making, its powers weren’t readily apparent to the general public until OpenAI’s release of ChatGPT just over a year ago.
While European investors' contributions to the sector have lagged a bit behind those of their US and Asian counterparts, the game of catchup is clearly on.
$2 billion valuation
Having made a splash on the scene with a €105 million Seed round investment, just a month after its founding, the French generative AI startup is reportedly close to closing a fresh €450 million investment deal that would provide the company with a valuation of $2 billion.
Sources close to Bloomberg report that Andreessen Horowitz is leading the round with a €200 million investment, with Nvidia and Salesforce committing another €120 million in convertible debt.
As part of the deal, Mistral’s three co-founders Arthur Mensch, Timothée Lacroix and Guillaume Lample will part with more than €1 million a piece in equity. Also cited in the offload of shares is Mistral AI’s chief advisor, former French minister Cedric O.
While still yet to be confirmed, in combination with Aleph Alpha’s recent $500 million raising of funds, the Mistral AI deal would see over €900 million pour into European AI-focused startups in just one month.
Lead image: The Mistral AI team in Paris via Mistral AI. Photo: Uncredited.