Open AI rival Mistral AI reaches unicorn status

PARIS, FRANCE — The French artificial intelligence (AI) startup Mistral AI has achieved unicorn status, reaching a valuation of €2 billion (US$2.1 billion) after a €385 million (US$415 million) funding round. 

Founded seven months ago by former researchers from Meta and Google’s DeepMind, Mistral AI aims to develop open-source AI models to rival current market leaders like OpenAI.

“Since the creation of Mistral AI in May, we have been pursuing a clear trajectory: that of creating a European champion with a global vocation in generative artificial intelligence, based on an open, responsible and decentralized approach to technology,” said CEO Arthur Mensch.

The recent funding round was led by top Silicon Valley venture capital firms Andreessen Horowitz and Lightspeed Venture Partners. Major tech companies, including Salesforce, have also invested in Mistral AI. The startup has raised nearly €500 million ($545 million).

The funding announcement comes after the European Union reached a landmark deal on world’s first AI regulations.