French tech startup Mistral AI has raised significant funds to develop its AI models, including Le Chat, a chat assistant that reached 1 million downloads in two weeks after its mobile release. With a valuation of $6 billion, the company is considered one of France’s most promising startups and could potentially compete with US-based OpenAI.
Mistral AI was founded by former employees of major tech companies such as Google’s DeepMind and Meta. The company has raised around €1 billion in capital to date, including a record-breaking $112 million seed round led by Lightspeed Venture Partners in June 2023. This funding has enabled the development of its suite of models, which includes Le Chat, Pixtral Large, Codestral, and Les Ministraux.
Le Chat’s Pro plan is priced at $14.99 per month, and the company generates revenue through APIs and strategic partnerships with companies such as Microsoft, IBM, and Orange. However, despite its promising growth, Mistral AI still faces challenges in competing with OpenAI and maintaining its self-defined position as a leader in independent AI research.
The company’s CEO, Arthur Mensch, has stated that an IPO is the plan for Mistral AI’s exit strategy, but acquiring the company at a valuation of nearly $6 billion may be challenging. Nevertheless, with continued growth and expansion into new markets, Mistral AI could potentially justify its high valuation and squash acquisition rumors.
Source: https://techcrunch.com/2025/03/06/what-is-mistral-ai-everything-to-know-about-the-openai-competitor