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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.

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.

I use their API for several models, both for personal and professional use. I think their approach (smaller, specialised models that are well-adapted for specific tasks) is a very good fit for how I work. And even the more general-purpose ones, like the chat model, just... refreshingly good in a lot of ways. My "ruthless review" prompt, which I use for, well, ruthless, guided reviews of early technical drafts, has good technical results for early reviews and holy crap is it ruthless and does it know how to swear. By the time Claude or ChatGPT are done being honest about how right I am to push back and gently circling back, Mistral's large model has sent me back to the drawing board twice.

Being in the EU does smooth a lot of things in terms of compliance, payment processing and whatnot, but I also like that their data retention and privacy policies are pretty clearly spelled out. I need to know something, there's a good chance it's explained outright somewhere and I don't need to read between the EULA lines and wonder what it means.

I do hit limits in terms of capabilities sometimes, and I'm sure other providers' services offer better results for some things. But the businesses ran on top of those more capable models feel too much like a scam at this point and I'd rather not depend on them for anything I actually need.

Mistral models are definitely good enough. Most people fall for what I call the SOTA Logical Fallacy: whenever there is a 'better model', they think they need to use it, when less-powerful models actually perform the same tasks just as well. (it's an inverse form of the Shifting Baseline Syndrome: every time a new model comes out, people shift their baseline of what is acceptable, despite the fact that a previous baseline was acceptable for the same task)

Devstral Small 2 was (and remains) a particularly strong small coding model, even beating larger open weights. Mistral's "problem" is marketing; other providers ship model updates constantly so they remain in the news and seem like they're "beating" the competition. And it works: people get emotionally attached to brands and models, deciding who's better in the court of popular opinion, and that drives their choices (& dollars).

> Most people fall for what I call the SOTA Logical Fallacy: whenever there ...

I think you'll find that ML now pretty much IS the HPC market, there's no distinction anymore. And the HPC market has always had the "being #1 gets you 99% of all business", even if #2 is only 10% behind SOTA.

Given what it's used for (ie. military applications, incl. nuclear weapons, but also rocket designs, flight planning, large-scale simulations), this is probably justifiable: part of it is states keeping in mind what the second prize in a war is worth ...

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.

It is not a good business model _long-term_.

but, if you are lucky, you can but enough time to become competitive in that sector.

If the EU can't rely on Nvidia everything must have broken down already, no advanced semiconductor today could be produced by one country only. Unless there's some alternative to ASML and Zeiss the EU is part of that chain.
> 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.

American designed. The GPUs are made in Taiwan, the RAM in South Korea, using machines from the Netherlands' ASML.

True independence is indeed hard and expensive. But it's also not the job of Mistral to tackle all the layers at the same time, not even the state-owned corporations of western Europe in the 20th century (and the EU isn't (yet) even a state) tried to tackle every stage of an industrial process by themselves.

Swiss & Monaco regulated industries can't use US models, nor clouds legally. Not just banking, there is a large part of business data holding identifiers that can't cross borders, military can't be too dependent on foreign hostile powers. If they would be purchasing, they would go for such tailored solution. Things like that add up.

Some of the use may be legal requirement, some is sponsored (as I would expect French government to do, to some extent EU), some are simply moral moves from >95% of the mankind not living in US who watch the news at least a bit. US isn't that big in many regards and its actively harming its reputation daily to the point there is little left.

Unless/until there is a risk that the chips themselves are backdoored and trying to exfiltrate data, European companies that host in Europe still solve a big problem for use of certain data in Europe.

It's not a purity test. Relying on US chips in not the same deal-breaker for all but the most extreme situation as relying on a poorly regulated US company to run the inference.

It's also naïve.

This is the same Europe that is gladly mandating age verification for citizens accessing online services, and that is made up of countries that routinely censor speech. There's also a variety of values that make up pan-European politics, both from a national and ideological perspective, that could make these efforts fracture.

If the idea is to not be subject to foreign pressure, maybe there's a short-term argument to be made for this, but like you say, they'll still be vulnerable to hardware imports, which is arguably the main vulnerability.

If the idea is to protect human rights on the continent, this does nothing.

> 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.

Well, you're pointing out a dissonance in a common AI (stock) booster argument: What if the hardware has lasting power?

If it does, then a company like Mistral can buy their capacity once from Nvidia (as in, once for each unit of capacity), then use it for a sustainable amount of time. No one forces them to scale beyond what's useful to the company and a mature user base. Provider dependence fades over time. That's a problem with Nvidia's current valuation.

If hardware doesn't last over that time, then the amount of cash invested in data center hardware can't really be reconciled with the expected revenue of running them at scale, and these projects are bound to run at a deficit over too long for them to be sustainable. That's a problem with Nvidia's valuation.

With independence as a target, Mistral can pretty safely bet on the former scenario, and then prepare for a future with either a mature market of diversified hardware providers, or innovations in quality and capacity for hardware they already have.

> At some point, businesses will choose the option that provides the most value. I'm very skeptical that Mistral will survive long-term.

This is a pretty naive and innocent take. There is good reasons to why customers might continue to find value in Mistral A.I.

(1) - There is no particular reason why "European" model should be worst than "Chinese" one. GDPR restrictions are not such a big deal and have been made lighter recently [1]. And contrary to China, Europe is not under hardware embargo.

(2) - Most domains are not software engineering and do not need ultra advanced and extremely large models with complex agent setup to reach their optimum in term of A.I usage.

(3) - At the opposite, there is pretty good reasons why companies would want to use European operators with the current geopolitical context (e.g Cloud Act, Risk of data leaks, Regulations, Taxes, Reputation, Geo-political risk, ...).

[1]: https://digital-strategy.ec.europa.eu/en/faqs/digital-packag...

American chips depend on European-made Extreme Ultraviolet lithography machines, which are among the most complex machines ever built and rely on European high-tech mirrors, etc... Everything is then assembled in Taiwan. This industry is so interconnected that nothing can be done independently, at least not in the Western part of the world.

The main point should not be the hardware or software itself, because these are just tools that can eventually be obtained. The real issue is development and its cost. US companies now have to cover substantial capital requirements for developing entirely new business models, capital that would likely never be accumulated in Europe. In the past, they competed globally, but in a more fragmented world this is no longer the case. As a result, the risk associated with such investments is higher because potential reward is smaller.

Mistral does not have to compete in the same way. It lacks both the ability and the intention to fight on the global stage against Silicon Valley capital. Instead, it can wait for the industry to stabilize and for business models to mature, then adopt them.

Over time, there will be standardized ways to train models to a certain quality, and key technologies will become less opaque. This is already happening. A similar pattern occurred in Europe with hosting services, for example Hetzner.

Mistral is not playing the same game. It is also unlikely that US attitudes toward Europe will change significantly even with a different administration, that Russia will stop trying to undermine the EU, or that China will become a fair and friendly player. All of this supports the case for local providers of critical infrastructure, which benefits companies like Mistral or similar European counterparts.

In my opinion, being "Not American" or "Not Chinese" is not a good business model long-term.

Exactly..

What happens when the capability of American models far exceeds the capability of non-American models? Wouldn't companies using American models have a huge advantage?

>At some point, businesses will choose the option that provides the most value.

There is no absolute "most value" though. What’s true in a world were betting on the least worst horse like world empire of the day doesn’t necessarily fit when it global order accelerate transition to multipolar geopolitics boosted on nationalist steroids.

Well on paper ASML leverage = EU has access to western semi tech stack. It would be interesting to see Europe successfully strong arm leading edge fabs in EU (not for lack of trying) exchange for ASML access... but Netherland has independent pro US foreign policy.
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.)
Well, they can train in any country they want. It's the inference and data placement that counts for legal purposes
They have some pretty cool people, though, no reason not to think they'll catch up soon enough.
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?

I don't know their strategy but I wish they would double up on the open source ecosystem by sharing their innovations like Chinese labs do and use the ones shared as well. I think models in the range of 50B - 250B still have a lot of room to grow and presumably compute to train them should be more accessible than multi-T parameter models.

This would also add pressure on other labs to keep being engaged in the open source ecosystem as a rug pull isn't a small danger IMO.

Interesting that you mention commodity, because the better AI models become the more fungible they are. AI companies become like web hosting companies renting out server space with good enough open models. It’s not like Excel that runs the world economy because people don’t want to learn anything else.
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.

You can get the frontier models hosted in Stockholm & Ireland: https://docs.aws.amazon.com/bedrock/latest/userguide/model-c...

There's probably a very good business to be made of bringing close to frontier knowledge and finetuning recipes and infrastructure to enterprises that cannot hire that talent. But that's largely not a business that is going to be of a lot of interest to technologists as consumers.

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.

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.

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.

> 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?

I hope Mistral will not fall for the Forbes kiss of death.
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.
That's... not that much money. Anthropic's supposedly worth $380 billion.
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.
If I could I would down vote this title, as it’s applying that only Americans have a right to be good
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

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.

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.
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...

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
Any recent news or data on NSA running a MITM at DE-CIX?
>“Poulantir” going public on the NYSE.

We don't have money, but we have the best puns.

-- The French, probably

Mistral brought Mixture of Experts and other really good innovations
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.