SoftBank Group Corp., the renowned Japanese technology conglomerate, is currently in talks about the prospect of funding Mistral AI, a prominent European startup specializing in artificial intelligence. Sources familiar with the matter indicate that SoftBank is keen on supporting Mistral in its upcoming fundraising endeavors, signifying a potential turning point for both entities. Though the specifics of the deal are yet to be ironed out, the investment could feasibly elevate Mistral’s valuation to surpass $2 billion. It’s crucial to bear in mind that these discussions are fluid and may not lead to a concrete agreement.
Mistral AI swiftly emerged as a strong contender challenging the U.S. hegemony in the AI sector. Established in early 2023 by former Google’s DeepMind and Meta Platforms Inc. engineers, Mistral positioned itself as a resilient European player. The company recently secured $415 million from investors like Salesforce Inc. and Nvidia Corp., valuing it at around $2 billion.
The growing allure around Mistral AI has captured the attention of industry titans. Microsoft Corp., a pivotal OpenAI collaborator, invested €15 million ($16 million) in Mistral and integrated the company’s latest model into its Azure cloud services for customers’ benefit. Mistral swiftly capitalized on this momentum through partnerships with IBM and Snowflake Inc.
SoftBank’s renewed focus on AI investments marks a shift from its earlier stance of abstaining from financing flourishing generative AI startups like OpenAI. SoftBank Vision Funds’ co-chief executive officer, Alex Clavel, has underscored the company’s cautious investment strategy in the AI domain. While SoftBank’s founder, Masayoshi Son, eyes a potential $100 billion chip venture to compete with Nvidia and supply core AI semiconductors, the company is meticulously evaluating generative AI prospects.
The optimism surrounding AI has also buoyed Arm Holdings Plc, a chip designer sponsored by SoftBank. Since its IPO last year, the company witnessed a more than twofold surge in its stock price, riding the wave of heightened interest in AI technology.
As discussions persist between SoftBank and Mistral AI, the prospective investment holds promise for the future of AI innovation in Europe. If materialized, SoftBank’s financial patronage could furnish Mistral with the resources needed to fortify its position as a key industry player. Nonetheless, the final outcome of these negotiations and the likelihood of a formal agreement remain uncertain.
FAQs
The source of the article is from the blog be3.sk