European artificial intelligence champion Mistral AI is “not for sale” and instead is working toward an initial public offering, according to Chief Executive Officer Arthur Mensch.
“Of course that’s the plan,” Mensch said on Bloomberg TV Tuesday when asked about a potential IPO for the French AI startup. Mensch, speaking in an interview at the World Economic Forum in Davos, said Mistral is opening a Singapore office to focus on the Asia-Pacific region and is growing in Europe and the US.
Mistral was launched in early 2023 as a European rival to OpenAI by former researchers from Google’s DeepMind and Meta Platforms Inc. It has released a series of generative AI models, including a ChatGPT-like feature called Le Chat.
Mistral is perceived by many investors as Europe’s best bet to create a global AI player. Last year, it raised €600 million ($621 million) from investors including General Catalyst, Andreessen Horowitz and Lightspeed Venture Partners, reaching a €5.8 billion valuation, Bloomberg reported.
Mensch has argued that Mistral can run models more cheaply than rivals, and it will target European firms worried about their data being handled by firms outside the European Union. Still, the company is dwarfed by its better-funded US rivals.
Amazon.com Inc.-backed firm Anthropic is in advanced talks to raise $2 billion at a $60 billion valuation, Bloomberg reported earlier this month. In October, OpenAI raised $6.6 billion, nearly doubling its valuation to $157 billion.
“Startups are always raising money, but we have plenty,” Mensch said when asked about fundraising. Scaling to compete with larger rivals could require new funds, he added.