On Tuesday the renowned artificial intelligence company Mistral raised $644 million in a Series B funding round. The fresh capital generated in the fundraising propelled Mistral’s value to reach $6 billion.
The funding round was led by the Massacheusset headquartered venture capital General Catalyst. Other participants in the fundraising included Nvidia, Andreessen Horowitz, IBM, Samsung Corp., Cisco, Lightspeed Venture Partners, and Salesforce Ventures.
General Catalyst Leads Mistral AI in $644M Funding Round
Interestingly the company value increased by threefolds from $2 billion. On LinkedIn, the AI researcher at Mistral Devendra Chaplot stated that from December last year, the company value has increased thrice.
The current firm value demonstrated that Mistral was headed in a direction that attracted prosperity. The executive confirmed that in the coming days, Mistral will increase its workforce.
In a subsequent announcement the chief executive of Mistral AI Arthur Mensch stated that the funding round played a critical role in Mistral’s global expansion journey.
The CEO appreciated the support the company received from the new and existing investors. Mensch believes that the new capital will support the attainment of the Mistral roadmap of improving the accessibility of AI tools.
Mistral AI Plans to Expand its Workforce
The executive admitted that the AI sector has become more competitive due to its capital-intensive nature. The development within the AI sector has forced companies to invest in integrating high computing power and hire new talents to boost productivity.
Mensch confirmed that the new capital will be utilized to increase Mistral’s computing power and expand the workforce. Also, the funds will be used to expand Mistral’s footprint in the United States.
Having been in the AI sector for nearly one year the $644 million demonstrated that investors have gained trust in Mistral AI. With the AI evolution, the Mistral AI seeks to cement its market position at a considerable position.
Currently, Mistral AI ranks fourth largest AI company competing with Anthropic, Databricks, and OpenAI. The Mistral AI boasts of having forward-thinking leaders including the former Meta and Google employees.
Besides having a strong team Mistral has invested in commercializing its proprietary AI models to meet the ever-changing market needs. The Mistral AI tools are designed to meet the needs of corporate clients such as privacy.
To cope with the market trends Mistral AI has been working on creating open-source models such as Mistral 7B, Mixtral 8x22B, and Mixtral 8x7B. The open source models aim at enabling the Mistral users including developers and researchers to create the projects seamlessly.
Factors Contributing to High Demand for Open-Source AI Models
The Mistral team believes that the open-source model will enable the company to attain its long-term objective. From its market research, the Mistral team noted that the open-source AI models were more promising.
A recent report demonstrates that high-performing tech industries are working on transforming open-source AI models. Meta leads other companies with around 1909 open source models.
Other companies competing to dominate the open-source AI sector include Google, Microsoft, and Apple Inc. owning 800, 300, and 47 models respectively.
Currently, the Mistral seeks to outpace Stability AI in developing open-source images. Even though Mistral is taking monumental steps in building the open-source AI model OpenAI remains the global leader in AI development.
In comparison to other AI models the Mistral open-source models are high-efficiency tools. The Mistral open-source models currently compete with OpenAI’s GPT- 3.5 Turbo, Anthropic Claude 2, and Google Gemini Pro.
A review of Mistral AI products demonstrates that the Paris-based tech firm provides free chatbots and multiple revenue-generating projects such as enterprise plans, and API tools among others.
The Mistral aims at ensuring its AI model improves people’s quality of life. To attain the end goal Mistral AI has been seeking to enter into a partnership deal with Microsoft Azure. Under the partnership agreement, Microsoft Azure will support Mistral to commercialize its AI models.
Editorial credit: T. Schneider / Shutterstock.com
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