Paris based artificial intelligence (AI) startup Mistral AI has raised €385m ($415m) in fresh funding from Andreessen Horowitz and Lightspeed Ventures.

A number of other investors also participated in the round, reported Bloomberg.

These include Eric Schmidt, New Wave, Motier Ventures, Salesforce Inc., and BNP Paribas. In addition CMA CGM plus other investors, including Bpifrance, Conviction, General Catalyst, Elad Gil, Emerson Collective, La Famiglia, and Sofina participated.

As per media reports, the funding values Mistral AI at $2bn, up from $260m in June 2023 when the company raised $113m in seed funding.

Timothee Lacroix, Arthur Mensch, and Guillaume Lample—former DeepMind and Meta Platforms scientists—co-founded the Paris-based AI startup in May this year.

Mistral AI provides the technology that can be used by businesses to deploy AI-powered products such as chatbots, search engines and AI assistants.

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By GlobalData

Mistral AI CEO Arthur Mensch, according to Bloomberg, said: “Since the creation of Mistral AI in May, we have been pursuing a clear trajectory: that of creating a European champion with a global vocation in generative artificial intelligence, based on an open, responsible and decentralised approach to technology.”

Unlike its rivals such as OpenAI and Google, Mistral AI opines that its technology should be available as open-source software.

Concurrent with the funding, Mistral AI announced that it has opened beta access to its AI platform services.

In an interview with The New York Times, Andreessen Horowitz general partner said: “We just believe AI should be open.”

He went on to say that the majority of the key technology behind modern technology, such as databases, programming languages, and computer operating systems, are open source.

The investment in Mistral AI, which is less than a year old, underscores the investors’ confidence in the AI technology.

According to GlobalData, the value of the AI market worldwide will reach $383.3bn by 2030, expanding at a compound annual growth rate of 21% between 2022 and 2030.