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The Tech Basic > News > Mistral AI Europe’s OpenAI Rival with Open Source Focus and $6B Valuation
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Mistral AI Europe’s OpenAI Rival with Open Source Focus and $6B Valuation

S.Dyema Zandria
Last updated: 25 May 2025 16:53
S.Dyema Zandria
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Image Source: Tech in Asia
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A French company named Mistral AI is trying to beat big tech giants like OpenAI at their own game. Started in 2023 by smart engineers from Google and Meta, Mistral AI makes smart computer programs called AI models. Their goal is to make powerful AI tools that anyone can use, not just big companies.

The French president Emmanuel Macron even told people to download Mistral’s Le Chat app instead of ChatGPT. In just two weeks, 1 million people downloaded Le Chat, making it the top free app in France.

Mistral AI
Image Source: TechCrunch

What Mistral AI Offers

Le Chat: The Friendly AI Helper
Le Chat is Mistral’s version of ChatGPT, but faster and free. It can answer questions in French, English, Spanish, and German. You can give it a picture or document, and it will summarize it for you. Developers love it because it can write and test code too.

A paid version called Le Chat Pro costs $15 a month. Big companies like car maker Stellantis use Le Chat to design better vehicles and talk to customers.

Free AI Models for Everyone
Half of Mistral’s AI tools are free to use. For example:

  • Mistral NeMo: Helps researchers study climate change.
  • Codestral: Writes computer code for free.
  • Mistral OCR: Turns scanned documents into editable text.

These free tools let small businesses and students use AI without paying expensive fees.

The Brains Behind Mistral AI

Mistral AI was founded by three friends, Arthur Mensch, Timothée Lacroix, and Guillaume Lample. They worked at Google and Meta before starting this company. They named it after the strong Mistral wind in France because they want their AI to blow away the competition.

The team believes AI should be open like Wikipedia. That is why they share some of their AI code for free. As Arthur says, “We want everyone to have the keys to the future, not just Silicon Valley.”

Big Money and Big Friends

Mistral AI has raised over $1 billion from investors like Microsoft, IBM, and Nvidia. Microsoft even added Mistral’s AI to its Azure cloud service. This lets companies around the world use French-made AI.

Other partners include:

  • Agence France Presse: Le Chat can search 40 years of news articles.
  • French Army: Using AI for defense plans.
  • Orange Telecom: Improving customer service with chatbots.

In 2025, Mistral will help build an AI campus near Paris with help from the UAE and France’s government.

Problems Mistral AI Faces

Even with all this success, Mistral AI has challenges. It makes much less money than OpenAI. Some people say Le Chat makes mistakes in complex math or history questions. Also, keeping AI open source while competing with giants is tricky.

But Mistral keeps improving. New models like Pixtral 12B understand both text and images better than Google’s Gemini. The company plans to go public in a few years instead of selling to a bigger tech firm.

Mistral AI
Image Source: The Straits Times

Why This Matters for Europe

Mistral AI is proof that Europe can compete in the global AI race. By mixing free tools with smart partnerships, it offers an alternative to American and Chinese tech giants. As Macron said, “This is our chance to lead, not follow.”

Teachers, farmers, and doctors in France are already using Mistral’s AI to save time. If the company keeps growing, it might change how the world sees European tech.

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S.Dyema Zandria
By S.Dyema Zandria
View enlightening tech pieces written by S. Dyemazandria. Keep up with the most recent news, advice, and trends in the field of technology.

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