Why Mistral is a Takeover Candidate

Earlier today, we published our Generative AI Takeover List of 78 startups that could be acquisition targets. The list includes companies that develop their own models or robots, haven’t raised funding in at least two years, or both. These companies are most likely to face a cash crunch and be open to takeover offers.

My colleagues Stephanie and Rocket highlighted the conundrum for these startups: It’s expensive to build large language models and hardware, and customers are cautious of spending big on AI apps and tools with unproven returns. 

A surprising company on the list is Mistral AI, the Paris-based developer of open-source models, founded early last year by alumni of Google DeepMind and Meta Platforms. The startup has found success among investors—and politicians—based in part on the notion of being a European alternative to OpenAI.