French AI Startup Mistral AI Looking to Raise Funds at $5 billion Valuation

French tech startup Mistral AI is reportedly in discussions to raise several hundred million dollars at a $5 billion valuation, according to a report by The Information.

Seeking Investors

The identity of the potential investors Mistral AI has been engaging with for this new funding round remains undisclosed. The startup boasts an impressive roster of existing investors including Andreessen Horowitz, Lightspeed Ventures, and Microsoft Corp.

Partnership with Microsoft Corp

Earlier this year, Microsoft Corp displayed confidence in Mistral AI by investing $16 million in the company and partnering with them to make their artificial intelligence models accessible through Microsoft’s Azure cloud computing platform.

EU Scrutiny

This partnership, however, did not go unnoticed by the European Union. Lawmakers demanded an investigation into the alliance, expressing concerns over a potential concentration of power by the technology behemoth.

Revenue Generation and Previous Valuation

The startup, which has only recently started generating revenue, raised a significant $415 million in December. At the time, Mistral was valued at 2 billion euros.

The recent announcement made by Mistral AI indicates a significant increase in valuation, reflecting the startup’s potential in the AI industry. However, the company has not yet responded to requests for comment on this matter.