Microsoft announces deal with Mistral, expanding AI portfolio

Microsoft (MSFT) has announced a new partnership with French artificial intelligence developer Mistral AI, though financial details of the investment have not yet been disclosed. The move allows Microsoft to expand its AI portfolio beyond its existing partnership with ChatGPT creator OpenAI — which Microsoft holds a 49% stake in.

Yahoo Finance Tech Editor Dan Howley breaks down the details.

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Editor's note: This article was written by Angel Smith

Video transcript

[AUDIO LOGO]

JOSH LIPTON: Microsoft has announced a new multiyear partnership with a French AI startup. Yahoo Finance's very own Dan Howley. Joins us now with more. Dan.

DAN HOWLEY: That's right, Josh. Microsoft is making a small investment. They won't say how much in France's Mistral.

This is essentially a competitor to OpenAI. This is a move that allows Microsoft to have multiple models in its kind of arsenal of AI capabilities that it can offer to its customers. It also is a way for them to get a little scrutiny off their back for when it comes to its close ties to OpenAI when there was the tumultuous kind of CEO swap that was going on with OpenAI.

Microsoft was right there with them. They've invested billions of dollars into the company. And they kind of get closer and closer as the days go by.

And so some regulators are questioning that. And so Microsoft investing in Mistral may allow it to push some of those concerns off for now at least in Europe. And so it's an interesting development.

Again, the company hasn't said how much they are investing. But to be fair, the majority, any move where a company is able to add more models is beneficial to its customers overall.

You look at Amazon. They do the same thing. Google does the same thing. So it should also help Microsoft as far as getting to its customers as well not just getting the feds off its back.