Mistral AI, a French artificial intelligence (AI) startup, has raised €600m ($642m) in a series B funding round. 

The investment values Mistral AI at €5.8bn, reported Reuters, citing sources.  

The funding round was led by General Catalyst and joined by existing investors such as Lightspeed, Andreessen Horowitz, Bpifrance, and BNP Paribas.  

Corporate backers including NVIDIA, Salesforce, Samsung, and IBM also participated in the latest investment round. 

As per the Financial Times (FT) report, DST Global, headed by Yuri Milner, joined the AI company as a new investor. 

Despite Microsoft‘s previous €15m investment through a commercial partnership, the technology company did not contribute to this latest round.  

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Mistral, which was founded in mid-2023, has now secured more than €1bn to fund its growth. 

The Paris-based company, often seen as Europe’s answer to OpenAI, plans to use the new funds to increase computing capacity, hire more staff, and expand its operations, particularly in the US.  

Its most recent investment consists of €468m in stock and €132m in debt, the FT said, citing sources.  

Mistral’s co-founders, Timothée Lacroix, Guillaume Lample, and Mensch, who have backgrounds at Google‘s DeepMind and Meta, retain the majority stake. 

Mensch stated that Mistral had invested “just a few dozen millions” of euros and utilised “a little more than 1,000” of the powerful graphics processing units required to train AI systems in order to create products that can compete with those made by some of the world’s wealthiest firms, such as OpenAI, Google, and Meta. 

The French startup’s most recent funding round comes shortly after Elon Musk raised $6bn for his July 2023 founded AI startup xAI.