Yesterday, Mistral AI, a Paris-based AI startup working on foundational models, announced a new large language model that could rival OpenAI’s GPT-4, a chat assistant and a distribution partnership with Microsoft. But Microsoft and Mistral AI buried the news — or at least an important part.
As part of the partnership, Microsoft is investing €15 million in the French startup ($16.3 million at today’s exchange rate). Microsoft says that this investment will convert into equity in Mistral’s next funding round.
It means that the valuation of Mistral AI isn’t changing following this investment. Microsoft’s percentage stake in the AI startup will also depend on the valuation of the next funding round.
Mistral AI reached a valuation of about $2 billion following its most recent funding round in December 2023. At the time, the company raised €385 million (around $415 million) with Andreessen Horowitz (a16z) leading the investment round. The company had previously raised a $112 million seed round just a few weeks after its inception.
If Mistral AI can at least maintain its valuation during its next funding round, it means that Microsoft will own less than 1% in equity in the French AI company.
Yesterday, Mistral AI unveiled Mistral Large, its flagship large language model that has been designed to rival other top-tier models, such as GPT-4 and Claude 2. Unlike previous Mistral AI releases, Mistral Large isn’t open source. Developers can access the model through Mistral’s own API platform.
Mistral AI and Microsoft also signed a distribution partnership deal for Azure. As a result, Mistral AI will likely attract more customers with this new distribution channel.
It also means that Azure customers can access Mistral’s models through Azure’s model catalog. Customers who want to remain in the Microsoft ecosystem have another option in addition to OpenAI’s models. Meta’s Llama models are also available on Azure.
With this investment, Microsoft is now an investor in OpenAI’s capped profit subsidiary and Mistral AI. Microsoft’s relationship with OpenAI is under scrutiny from EU and UK regulators.
This new investment has attracted the attention of the European Commission. A spokesperson told TechCrunch that the EC will analyze the investment deal between Microsoft and Mistral AI, as part of its ongoing scrutiny procedure between large tech companies and generative AI companies.
That’s why Microsoft didn’t make a big deal about it. As for Mistral AI, the so-called European AI champion looks more and more like its American competitors with a closed-source approach and a long list of American backers.
This article has been updated to include a statement from the European Commission.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.