AI startups apparently are going to end the year the same way they began it — raising huge amounts of cash.
Paris-based Mistral AI, an OpenAI and Anthropic competitor, is putting the final touches on a massive round of approximately $487 million that would value the company at $2 billion, per a Bloomberg report.
The round was first reported in October, with the round being around $300 million.
Per the new report, the round will include approximately $350 million in equity from investors led by Andreessen Horowitz — which is expected to invest more than $200 million. Other investors in the round include General Catalyst, Lightspeed Venture Partners and Bpifrance.
The raise comes just about six months after the startup — which is developing an open-source large language model — raised a seed round worth approximately $111 million led by Lightspeed Venture Partners.
More big money
In June, Palo Alto, California-based Inflection AI locked up a huge $1.3 billion round led by Microsoft, Reid Hoffman, Bill Gates, Eric Schmidt and new investor Nvidia, which valued Inflection AI at $4 billion, according to Forbes. The startup is building what it says will be the “largest AI cluster in the world.”
In November, another European startup raised a big sum as Germany-based Aleph Alpha raised a $500 million Series B led by Innovation Park Artificial Intelligence, Bosch Ventures and the companies of Schwarz Group. Founded in 2019, Aleph Alpha allows companies to develop and deploy large language and multimodal models.
Illustration: Dom Guzman
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