Microsoft recently invested $16.3 million in Mistral AI, a Paris-based startup, as part of a distribution partnership. Mistral AI introduced "Mistral Large," a competitor to GPT-4, and restricted it to their API.
Microsoft's stake in Mistral's next funding round depends on its valuation. The move aims to expand Azure's AI offerings, but draws regulatory scrutiny in the EU. This investment underscores Microsoft's growing interest in AI partnerships, amid concerns over competition and closed-source models.