French startup Mistral AI has been in talks with investors about raising several hundred million dollars at a valuation of $5bn.

The reported talks come just a few months after Microsoft invested $16m in Mistral and implemented the company’s AI models through its Azure cloud computing platform.

Microsoft and Mistral’s partnership was criticised by EU lawmakers calling for an investigation into whether it was anti-competitive.

It is not clear which investors Mistral has spoken to about the new funding round, The Information reported, citing someone familiar with the matter. 

Mistral AI was founded in 2023 by former Meta and Google DeepMind employees. The France-based company specialises in open-source large language models.

The value of global AI deals totalled $331bn throughout 2023, an increase from $211bn in 2022, according to GlobalData’s deal database.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In 2023, the value of global AI deals peaked in the second quarter (Q2), with the sector raising $119bn. This was a slight increase over the beginning of the year, which saw deals valued at $104bn. However, in Q3 the value of AI deals fell significantly lower, totalling $68bn.

GlobalData estimates that the AI global market will reach $909bn by 2030, growing at a compound annual growth rate of 35.2% between 2022 and 2030.