Mistral AI secures $113M in seed funding, poised to dominate AI industry.
A startup in the field of artificial intelligence (AI), Mistral AI, which is only four weeks old, has raised $113 million in seed funding. The funding round was led by Lightspeed Venture Partners and included participation from JCDecaux Holding, Motier Ventures, and Rodolphe Saadé in France, as well as international venture capitalists such as Exor Ventures from Italy, Belgium’s Sofina, and others.
The seed round has valued the Paris-based firm at $260 million, positioning it as a competitor to OpenAI, the creator of ChatGPT.
Mistral AI Reveals Plans after Its Funding Round
According to CEO Arthur Mensch, one of the biggest challenges in the field of AI is making it useful. To this end, Mistral AI will focus on open-source solutions and use the funding to target enterprises. The company estimates that its first models for text-based generative AI will be released by 2024. In order to achieve its goals, Mistral AI plans to hire more experts from various fields, including AI research, software engineering, and product development.
Mensch has acknowledged that AI is already growing at a fast pace, and this may be linked to the relative success of OpenAI’s GPT model in 2023. However, he and other co-founders of Mistral AI have reservations about the proprietary approach that has been used in the field thus far. Instead, they seek to do things differently by focusing on open source solutions, which Mensch says is a core part of their DNA.
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Despite acknowledging that there might be security concerns about open source, especially with applications, Mensch insists that the benefits of open source far outweigh its risks. He believes that open source can prove to be tactically advantageous in security as well.
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