Mistral AI, one of Europe’s most valuable AI companies, is reportedly making plans to build a base in the US, having already started working on a Palo Alto office.
European artificial intelligence (AI) start-up, Mistral AI, is reportedly planning to expand into the US, according to The Financial Times. Currently based in Paris, the start-up is working on an office in Palo Alto, in California.
The move suggests its ambition to expand in the US and in the global tech hub, Silicon Valley, as the company tries to hire better industry talent, including engineers, AI scientists, administrative and sales staff. Mistral AI is also reportedly contemplating moving away from the French capital, although no additional details have been shared yet.
The company is one of Europe’s most highly valued AI start-ups, providing sovereign AI to several European and global clients. It was worth approximately €6bn back in June this year and has been crucial in building Europe’s domestic AI industry. This in turn, was expected to go a long way in helping reduce Europe’s reliance on China and the US, when it comes to AI. Hence, a move to the US would be a blow for Europe’s AI economy.
Mistral AI has been financially supported by Magnificent Seven tech companies such as Nvidia and Microsoft, as well as by venture capital companies such as Andreessen Horowitz. At present, the company has over a 100 employees, with the majority of them still based in Paris, while 20 are in the US.
The company is the latest in a long line of European companies looking to the US to expand, or list primarily in. This is mainly because of a wider range of investors, a deeper capital pool and higher liquidity.
The US also has a more supportive regulatory environment when it comes to artificial intelligence and tech startups, than Europe, which can make the shift even more attractive for some companies.
However, the artificial intelligence sector in the US has also become increasingly more competitive and hard to break into in recent years, as more AI companies such as OpenAI have been launched.
Competition for staff from other cutting-edge AI companies such as Inflection and Adapt has also intensified, as Big Tech companies such as Microsoft and Amazon race to hire them.
Although Mistral AI is still very young, at less than two years old, compared to other better-established AI companies in the US, it claims that its AI models cost less to build, while also being more efficient.
Mistral AI ties up with Capgemini and Microsoft to speed up generative AI adoption
Mistral AI recently joined forces with Microsoft and Capgemini, to boost the adoption of generative AI technologies, as well as expand Capgemini’s Intelligent App Factory on Microsoft Azure. This tie-up is expected to focus on organisations and industries that need highly customised AI solutions.
Arthur Mensch, co-founder and chief executive officer (CEO) of Mistral AI, said in a press release on Capgemini’s website: “We are looking forward to extending our collaboration with Microsoft and Capgemini to transform how businesses worldwide leverage generative AI technologies.
“Our models, which offer unparalleled customisation and robust multilingual capabilities, combined with Microsoft’s powerful cloud platform and Capgemini’s deep industry insights and business transformation expertise, are essential for global organisations on their journey to AI adoption.”
Nick Parker, president of Industry and Partnerships at Microsoft, also said in the press release: “At Microsoft, our unwavering commitment is to empower every organisation to achieve more through the transformative power of AI.
“Through this collaboration with Mistral AI and Capgemini, we will deliver innovative solutions that fully leverage the potential of Generative AI to enable business transformation and growth.”
Euronews has contacted Mistral AI for comment.
