– Mistral AI, a Paris-based startup working on open source large language models, is raising money at a $6 billion valuation to compete against OpenAI and Anthropic.
– The round is expected to be around, but less than, $600 million, with DST, General Catalyst, and Lightspeed Venture Partners all looking to be part of it.
– SoftBank is not currently part of the deal, despite previous reports linking the company to a Mistral investment.
Paris-based Mistral AI, a startup focused on open-source large language models for generative AI services, is currently raising funds at a $6 billion valuation, which is three times its valuation from December. Notable investors in this round include DST, General Catalyst, and Lightspeed Venture Partners, with SoftBank not currently involved in the deal. The round is expected to be around $600 million, with high interest from potential investors.
Mistral AI, founded by Arthur Mensch, has been attracting significant attention since March, following a previous funding round of $415 million at a $2 billion valuation. The company differentiates itself by taking an open-source approach to its work and has released three large language models since September 2023. Despite the lack of specific user and revenue figures, Mistral AI’s valuation has grown rapidly in recent weeks to $6 billion.
In a competitive AI market, SoftBank is showing interest in more AI deals, although not currently investing in Mistral AI. The firm recently led a $1 billion funding round for Wayve and is reportedly considering acquiring Graphcore, a U.K.-based AI chip designer. Graphcore, facing challenges in a market dominated by Nvidia, has been exploring potential acquisitions or funding opportunities to extend its runway and enhance its revenue prospects. SoftBank’s involvement could provide a lifeline for Graphcore as it navigates these challenges.