Microsoft invests $2.1B in French AI startup Mistral to develop new language models

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Microsoft has invested in French AI startup Mistral as part of a new multi-year partnership. Mistral is valued at $2.1 billion and was founded just 10 months ago. They will work together on developing and deploying large language models, similar to Microsoft's partnership with OpenAI. 

As part of the deal, Mistral's AI models will be available on Microsoft's Azure cloud computing platform. This includes a new model called "Mistral Large" that is designed to compete with OpenAI's GPT-4. Unlike previous open source Mistral models, this one will be commercial. It ranks as the second most powerful conversational AI available through an API, after GPT-4. 

Mistral Large and a smaller model called "Mistral Small" can now be accessed on Azure or through Mistral's own infrastructure in Europe. Mistral is also launching an AI chatbot called "Le Chat" based on its models. The Microsoft funding will allow Mistral to explore more commercial opportunities for its technology, though financial details were not disclosed. This marks Microsoft's second major AI partnership after investing over $10 billion in OpenAI.