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Mistral AI Raises $487M, Reaches $2B Valuation in Rapid Funding Round

Paris-based Mistral AI, a rival of Anthropic and OpenAI, is concluding a $487 million funding round, valuing the business at $2 billion. Andreessen Horowitz, Lightspeed Venture Partners, Bpifrance, and General Catalyst are among the investors. Nvidia and Salesforce are set to contribute $130 million in convertible debt. This follows Mistral AI's $111 million seed round led by Lightspeed just six months ago.

OpenAI recently secured a record-breaking $10 billion deal from Microsoft. Anthropic raised over $2.6 billion this year, while Inflection AI closed a $1.3 billion funding round in June. Aleph Alpha, a German-based firm, made waves with a $500 million Series B in November.

Forbes reports Inflection AI is building the 'largest AI cluster in the world.' Mistral AI's rapid funding mirrors the ongoing trend of substantial investments in AI startups, shaping a dynamic landscape in the tech industry.