French AI innovator Mistral AI is reportedly close to closing a funding round of around €2 billion, which would elevate its valuation to approximately $14 billion—a sharp climb from the $10 billion valuation earlier targeted in preliminary discussions.
Rapid Ascent in AI and Revenue
Founded in 2023 by former DeepMind and Meta researchers, Mistral has quickly become a leading name in open-source generative AI. The company’s revenue is projected to surge—from around €10 million in 2023 to an estimated €60 million in 2025—driven by growing enterprise partnerships and widespread adoption of its chatbot Le Chat.
Notably, Microsoft has contributed to Mistral’s expansion through a €15 million investment and helps distribute its models on Azure. Other key backers include Andreessen Horowitz, General Catalyst, and Nvidia. Institutional customers span BNP Paribas, AXA, Stellantis, and CMA CGM, deepening its industrial footprint.
Why This Matters
- European AI Champions Rise: Mistral’s breakthrough marks a turning point, positioning it at the forefront of EU-based efforts toward AI independence and innovation.
- Scaling with Open-Source Strategy: Its open-weight, modular models, such as the flagship Mixtral and Le Chat, ensure customization and compliance—critical advantages in regulated industries.
- Future Growth Catalysts: The new capital will support Mistral’s AI model development, global expansion, and critical infrastructure projects like its Paris data center initiative.
