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Mistral built a $14B AI empire by not being American

202 points by rzk

by jillesvangurp

2 subcomments

These are just signs of this market maturing. For a lot of business customers, EU based hosting is not optional. That includes models. Routing requests via API endpoints in the US is not really acceptable. And anything involving privacy sensitive data of course needs to be handled properly. Sam Altman pinky swearing to be nice doesn't quite cut it in terms of hard guarantees.
EU based legal entities and strong compliance with local laws with some hard SLAs and contractual guarantees is not going to be optional for liability reasons. Provenance of models, their training data, and exact ways they have been instructed to act are also not just nice to haves.
I expect non EU jurisdictions are eventually going to be similarly picky about their AI suppliers and I expect all the big tech providers to adapt to local markets just like they did with cloud infrastructure.
I don't have much experience with Mistral yet. But I may need to get my hands dirty to be able to sell this to some of our customers. We have a few more picky customers in Germany.

by phillc73

3 subcomments

I am a Mistral Le Chat Pro subscriber. I specifically chose to test their offerings because they are European. I don't have the necessary local hardware to run really big models, therefore need to choose a cloud provider if I want LLM action.
I find the antics of Anthropic, OpenAI, Google, Microsoft distasteful and avoid their products where I can.
After testing Le Chat and Devstral-2 for a while, I felt their offering was good enough to stump up some cash for it. I appreciate that many of their models are open weights and Apache 2.0 licensed. In general, I've been happy enough with the service and quality.
Maybe others are better, but I have little reason to change right now. If curiosity gets the better of me, I'll be looking at Qwen, Kimi, GLM, Deepseek, other open weights models, before Anthropic and OpenAI.

by aurareturn

20 subcomments

In my opinion, being "Not American" or "Not Chinese" is not a good business model long-term.
At some point, businesses will choose the option that provides the most value. I'm very skeptical that Mistral will survive long-term.
Edit: I hear the commenters to this post. However, Mistral still relies on American chips. If there is truly a divorce between Europe and the US such that relying OpenAI or Anthropic is not an option, neither will relying on Nvidia and likely the thousands of smaller hardware and software suppliers that make Mistral work. That's why I don't think it's realistic to say that Europeans can't rely on OpenAI/Anthropic and that Mistral is free from American reliance. If you want true independence, you have to rebuild every single layer like what China is doing. That's hard and expensive.

by eigenspace

0 subcomment

IMO this is pretty rational. Mistral is 'smart enough' for lots of applications, very fast, and embedded in a regulatory environment that people find more trustworthy.
It's not exactly hard to see why people might feel that relying on an American or Chinese provider is a major liability.

by torginus

1 subcomments

I feel like there's a gross mischaracterization here - $14B in AI terms is like 'second-best VSCode fork' tier money.
These guys have built a fully built-out AI company with a range of models and applications.

by s_dev

2 subcomments

I support the US->EU movement but I've been put off Mistral's Le Chat. https://european-alternatives.eu/
I subscribed (and paid) for a year of Pro. They gave me 1 month on the basis that a payment was missed on the second month. They simply stopped providing Pro and continued to take a monthly subscription for the next year (Stripe allows subscriptions to be fixed in the background). I must have changed cards that specific month.
I spoke to customer service who told me any sort of refund or complementary tokens was impossible and that I should have been paying closer attention to how much money I was giving them. So I shut down the subscription and now pay Claude $200 a month and deleted the account.
Genuinely was shocked at poor customer service can be with EU services sometimes compared to US ones. That said I will keep trying and exploring EU options, hopefully a new EU LLM giant emerges in the next few years.

by mark_l_watson

1 subcomments

Indirectly I use Mistral daily: I like Proton’s Lumo private chat and that runs on Mistral technology. Something like Lumo is very much good enough to replace search and general information browsing and for me is very practical.
What is not so practical is my paying for Gemini Ultra, which has some practicality but is something I pay for because it is fun using strong AIs like Claude and Gemini Pro in AntiGravity. It feels funny to admit paying a lot of money just to have fun with something.
I wish Mistral good luck, and I like their deployed forward engineers approach to business. Seems practical.

by pu_pe

4 subcomments

Mistral has a very difficult scenario to navigate. Training models in Europe is difficult and expensive because of regulations and energy prices. Their own open models are lagging behind the Chinese ones. That means eventually they will turn into an inference-only enterprise running mostly Chinese open models, at which point any other European player could compete (Hetzner, OVHCloud, etc.)

by neves

0 subcomment

It's very sad that the rest of the world is seeing USA as a non trustable partner. It always has been an inspiration and now using their services as a liability.

by tom1337890

0 subcomment

I follow Mistral AI and especially liked their voice Model voxtral, which is supposed to be better than whisper. So while the LLM can maybe not compete, they do compete in voice. [1]
I think these kind of special use cases matter a lot for people who want to build special software. Voice for example is not yet that uniformly accessible as LLMs. So once you chose one provider you're more tighty coupled. Plus, handling voice is more sensitive by nature, so guess at least for European companies building something with voice, Mistral is the go-to company now.
Also, running voxtral yourself is not that straight forward as of now, so relying on their inference makes sense.
1: https://mistral.ai/news/voxtral

by 0xbadcafebee

0 subcomment

AI is now at the forefront of cyber weapons development, so it's basically a munition, like encryption was at the turn of the century. Countries will need models they can vet, developed by allies (the US now basically has no allies), and run in local datacenters. The US had a significant advantage in physical arms due to its massive military industrial complex. But with AI, it's letting private industry do all the heavy lifting while other countries rely more on government support.
The US may have the best AI weapons, but it won't be able to sell them to anyone, so it won't make money needed to keep paying for the AI weapons. Meanwhile the rest of the West will rely on Mistral for its cyber weapons.

by Eldodi

0 subcomment

It will be interesting if Mistral succeeds to keep up with US and Chinese labs in terms of Models, or if they just become an integration company of chinese OSS frontier labs, like more and more of their competitors

by recsv-heredoc

2 subcomments

LLMs are rapidly becoming the first 'purely digital commodity'.
Being digital it's somewhat hard to apply any kind of trade protectionism or Chicken Tax onto them. Maybe there's a market for cruelty-free vegan non-GMO (low-water-use sustainable energy) LLM tokens as well as European ones?
I really like what Mistral did for open Models - but what is the plan to compete against the likes of Moonshot, DeepSeek in the global market? When you can get Kimi K2.6 served via cloudflare it raises tough questions on the economics of it all.
What exactly is Mistral's strategy is aside from niche regulatory requirements or a Eurocentric hedge for AI sovereignty? Do they even have ambitions to compete on the global stage?

by s3tt3mbr1n1

1 subcomments

I think it’s important to note that, at least for now, Mistral uses the big American cloud providers for inference [0].
[0] https://trust.mistral.ai/subprocessors

by enaaem

2 subcomments

It seems that the winner takes all market for tech will eventually go away. Countries and regions want to develop their own good enough solutions that is not dependent on America.

by avrionov

1 subcomments

The word empire is used for anything these days. Mistral is successful, but their market cap $14B is less than than revenue of OpenAI or Anthropic. They may not have the scale to compete with the American and the Chinese companies.

by octocop

0 subcomment

Mistral brought Mixture of Experts and other really good innovations

by jubilanti

1 subcomments

> from Mistral’s offices in the trendy 10th arrondissement of Paris
Couldn't continue reading after this ignorance. The 10th is dominated by the two major train stations and warehouses. Notorious for petty crime and giving arriving tourists "Paris Syndrome" because of the disappointment. It is the least trendy arrondissement in Paris. It is central, but that's about it.
Edit: Looked it up and Mistral's offices are actually in the 2nd, about 500 meters from the Louvre. A very trendy area indeed. Is this a human or AI hallucination? What else in this article is wrong?

by resheku

0 subcomment

If I could I would down vote this title, as it’s applying that only Americans have a right to be good

by Zopieux

0 subcomment

>“Poulantir” going public on the NYSE.
We don't have money, but we have the best puns.
-- The French, probably

by lenerdenator

1 subcomments

That's... not that much money. Anthropic's supposedly worth $380 billion.

by thinkindie

0 subcomment

I hope Mistral will not fall for the Forbes kiss of death.

by raffael_de

0 subcomment

Any recent news or data on NSA running a MITM at DE-CIX?

by sylware

1 subcomments

Is it possible for the common people to access mistral? And that without being gated by a 'whatng cartel' web engine?

by PeterStuer

0 subcomment

And yet there is heavy involvement of US capital and technology in Mistral. Not just hardware and finance, but also board seats.

by guluarte

0 subcomment

or because it one of first companies to release an OSS model that somewhat useful

by shevy-java

0 subcomment

While that may be slightly better than being dependent on Washington, I still don't like it. Everyone is now AI-crazy. If you go to clown-channels such as the war industry or the crazy Palantir guy who wants to ruin everyone, you see that they dream of AI controlled mega-drones wiping out cities. That's the next "evolutionary" step; you can already see video footage of how much drones changed war. And these guys all push for more, more, more. I now understand why Trump keeps on making so many wrong decisions - he is being showed war-videos and sells it as a promotional agent. That's his main job; for anything else other than promo he has no competence.

by logicallee

0 subcomment

Not being American is very important to me and my partner. For my next job, I'm looking exclusively at companies headquartered in the PRC. My partner and I formally registered ourselves as foreign agents of the PRC. While we did that, the NSA actually took down the entire DOJ filing site for this just to further obstruct us, in the end we had to register with the Attorney General by email, persuant to U.S. law.[1]
Of course, we don't think that China is perfect. But we have had nothing but abuse and interference from USG. You can read more about its OPSexr program here.[2] Typical quote:
"At other times, the conversations became explicit. The active source at the NSA claimed to have witnessed hundreds of sexually provocative discussions, which, he added, occurred mostly on taxpayer time. The former NSA source who was familiar with the chats recalled being “disgusted” by a particularly shocking thread discussing weekend “gangbangs.”"
This matches the experience my partner and I have every day, while our ordinary marital contact and spending time together is disrupted under bullshit pretexts.
[1] https://taonexus.com/publicfiles/apr2026/registered-agent.ht...
[2] https://www.city-journal.org/article/national-security-agenc...

by eolgun

0 subcomment

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