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Microsoft-Backed Mistral AI Plans IPO, Valued at $6.2 Billion

Jan 21, 2025, 12:37 PM

Mistral AI, a French generative AI startup backed by Microsoft, has announced plans to pursue an initial public offering (IPO) to maintain its independence, according to CEO Arthur Mensch. Speaking at the World Economic Forum in Davos, Mensch emphasized that the company is "not for sale" and is focused on global expansion, including opening an office in Singapore to target the Asia-Pacific region. Founded in 2023 by former researchers from Google DeepMind and Meta, Mistral has positioned itself as a European competitor to OpenAI, offering open-source AI models and products such as Le Chat, a generative AI chatbot. The company has raised over €1 billion in funding, including €600 million in a June 2024 round, and was last valued at $6.2 billion. Key investors include Andreessen Horowitz, General Catalyst, and Lightspeed Venture Partners. Mistral is also expanding its presence in Europe and the U.S. while aiming to establish a transatlantic footprint. Additionally, the company recently signed a multi-million euro deal with Agence France-Presse (AFP) to incorporate its articles into Mistral's chatbot.