Microsoft Signs Deal with Mistral AI, an OpenAI Rival with Its Own Chatbot

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Microsoft Signs Deal with Mistral AI, an OpenAI Rival with Its Own Chatbot
Microsoft Signs Deal with Mistral AI, an OpenAI Rival with Its Own Chatbot

Microsoft established an artificial intelligence relationship with the French company Mistral AI on Monday, which might reduce the software giant’s reliance on ChatGPT-maker OpenAI to offer the next wave of chatbots and other generative AI products.

Microsoft established an artificial intelligence relationship with French company Mistral AI on Monday, potentially reducing the software giant’s reliance on OpenAI, the maker of ChatGPT, for the next wave of chatbots and other generative AI products.

Mistral AI was founded less than a year ago, but Microsoft identified it Monday as an “innovator and trailblazer” at the forefront of developing more efficient and cost-effective AI systems.

Microsoft and Mistral did not disclose the financial parameters of the agreement, although Microsoft did say it included a small investment in the Paris-based business. That means it is much smaller than Microsoft’s billion-dollar investment in OpenAI, a long-term partnership that has sparked antitrust concerns in the United States and Europe.

Mistral on Monday introduced a public test version of its own chatbot, Le Chat, which was supposedly so popular that a business representative stated it was briefly inaccessible for part of the day.

The business also introduced Mistral Large, its newest large language model, which it claims is comparable to competitors like OpenAI’s GPT-4, Anthropic’s Claude 2, and Google’s Gemini Pro and will be offered on Microsoft’s Azure cloud computing platform. Mistral has previously stated that it is collaborating with other major cloud providers, like Amazon and Google.

Mistral made a significant statement by gathering large sums of investor investment, resulting in a multibillion-dollar valuation mere months after it was created last spring. It was founded by three French former Google and Meta researchers: CEO Arthur Mensch, Chief Scientist Guillaume Lample, and Chief Technology Officer Timothee Lacroix.

It has touted an “open-source” approach to AI development, which includes openly sharing critical components of some AI systems, as opposed to businesses like OpenAI, which keep them highly guarded. However, the new flagship model, Mistral Large, will not be available, according to the company’s website.

When the European Union was preparing the final edition of its Artificial Intelligence Act, a comprehensive set of AI laws, Mistral opposed efforts to limit the foundation models that underpin generative AI systems. Mensch turned to social media to argue that the EU’s proposals for a two-tier structure would deter inventive arrivals.

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