Mistral is raising at $5b valuation

Mistral AI, a Paris-based startup specializing in large language models (LLMs), is reportedly in discussions with investors to raise new funding at a valuation of $5 billion. This information was reported by The Information, which cited a source with direct knowledge of the matter[1][2].

The company has experienced a rapid increase in valuation, with a previous investment round in December raising $415 million and valuing the company at $2 billion. Since then, Mistral AI has raised additional funds, including a $16.3 million investment from Microsoft Corp. in February and an undisclosed sum from Databricks Inc. last month[1].

Mistral AI's recent developments include the launch of its newest open-source LLM, Mixtral 8x22B, which is based on a mixture-of-experts architecture. This model has demonstrated competitive performance in internal evaluations, outperforming Meta Platforms Inc.’s Llama 2 70B in several math and coding benchmark tests. The mixture-of-experts approach also offers the benefit of reduced hardware usage, as it activates only the necessary neural networks for a given prompt[1].

The company has begun generating revenue with the introduction of its first commercial offerings, which include Mistral Large, an advanced LLM, Mistral Small, a more cost-efficient language model, and a ChatGPT-like enterprise chatbot. These products were launched on the same day Mistral announced its partnership with Microsoft[1].

Mistral AI's efforts to secure additional capital are seen as a move to maintain competitiveness and keep pace with other industry players, such as OpenAI, which is reportedly preparing to launch a new flagship LLM called GPT-5. The potential funding could help Mistral AI make significant investments in new LLM development[1].

Citations:
[1] https://siliconangle.com/2024/04/17/open-source-llm-startup-mistral-ai-reportedly-seeking-new-funding-5b-valuation/
[2] https://www.theinformation.com/articles/mistral-an-openai-rival-in-europe-in-talks-to-raise-capital-at-a-5-billion-valuation
[3] https://www.reuters.com/technology/ai-startup-cohere-seeks-5-bln-valuation-latest-fundraising-source-says-2024-03-21/
[4] https://www.reuters.com/technology/analytics-firm-amplitude-valued-5-bln-shares-jump-nasdaq-debut-2021-09-28/