What is Mistral AI? Everything to know about the OpenAI competitor

Mistral AI, a French company known for AI assistant Le Chat and foundational models, is seen as one of France’s top tech startups and a potential competitor to OpenAI. Despite its $6 billion valuation, its global market share remains modest.

The recent launch of Le Chat on mobile app stores generated excitement, especially in France. French president Emmanuel Macron even recommended downloading Le Chat over alternatives like ChatGPT by OpenAI in a TV interview.

While the attention is positive, Mistral AI still faces challenges in competing with OpenAI while maintaining its identity as “the world’s greenest and leading independent AI lab.”

What is Mistral AI?

Founded in 2023, Mistral AI aims to democratize frontier AI. It offers models like Le Chat and Mistral OCR, with a focus on openness in AI.

Le Chat, an alternative to ChatGPT, gained popularity with 1 million downloads in two weeks. Mistral AI’s models include Mistral OCR, enhancing text file conversion for AI ingestion.

Who are Mistral AI’s founders?

Mistral AI’s founders have AI research backgrounds at major tech companies. CEO Arthur Mensch was at Google’s DeepMind, while CTO Timothée Lacroix and chief scientist officer Guillaume Lample were at Meta. Advisory board members include industry experts.

Are Mistral AI’s models open source?

Mistral AI offers both commercial and open-source models. Premier models have restricted weights, while free models like Mistral NeMo are open-sourced under the Apache 2.0 license.

How does Mistral AI make money?

Mistral AI generates revenue through Le Chat’s paid tiers, API usage fees, licensing premier models to enterprises, and strategic partnerships. While revenue is increasing, it’s primarily from B2B sources.

What partnerships has Mistral AI closed?

Mistral AI has partnered with Microsoft, Agence France-Presse, France’s army, various companies and organizations for model distribution, data access, and collaboration.

How much funding has Mistral AI raised to date?

As of February 2025, Mistral AI secured around €1 billion in funding through equity and debt financing rounds. Notable investments include a $112 million seed round, a €385 million Series A, and a €600 million round led by General Catalyst.

What could a Mistral AI exit look like?

Mistral AI aims for an IPO to realize its value, as it’s not currently for sale. Despite acquisition rumors, the company focuses on scaling revenue to align with its valuation.