Microsoft and Mistral have announced a multi-billion-dollar deal to build AI infrastructure across Europe, expanding their existing strategic partnership. The investment aims to develop advanced AI capabilities and data centers in the region.
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Microsoft and French AI company Mistral have signed a multi-billion euro agreement to build AI infrastructure in Europe. Mistral will deploy thousands of Nvidia Vera Rubin GPUs, and Microsoft will use that computing power to support its cloud and AI services.
Microsoft and Mistral have announced an expanded strategic partnership, reaching a multi-billion euro agreement to build AI infrastructure in Europe. Under the deal, Mistral will deploy thousands of Nvidia Vera Rubin GPUs, and Microsoft will use that computing power to support its cloud and AI services.
Mistral's Medium 3.5 and OCR 4 models are now available on Microsoft Foundry, with Medium 3.5 also usable in Copilot Studio. Enterprises can run Mistral models via Azure Local in the cloud, on-premises, or fully offline, a solution targeting regulated industries such as finance, healthcare, and manufacturing.
Microsoft President Brad Smith said Europe should be able to use powerful AI without having to give up control of its data. Mistral CEO Arthur Mensch believes this partnership helps Mistral reach global enterprises and public institutions. Mensch also warned that companies using closed AI models risk leaking trade secrets.
Founded in 2023, Mistral recently saw 20x revenue growth, with annualized revenue exceeding $400 million. The company invested €1.2 billion in a data center in Sweden. According to Bloomberg, Mistral is negotiating a new funding round of about €3 billion, valuing it at around €20 billion. Additionally, Mistral has renamed its chatbot Le Chat to Vibe and repositioned it as an AI productivity tool, adding Work Mode and Code Mode.
This article is based on a report from THE DECODER; revenue, investment, and funding data come from Bloomberg and have lower confidence.
The Microsoft-Mistral partnership marks a major step in European AI infrastructure development, while Mistral's rapid growth and funding dynamics indicate its rising market position.
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