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Mistral AI raises $640M at $6B valuation
- deleted 2y ago[deleted]
- t_l_d_r 2y ago[dead]
- underyx 2y agoAny source for the valuation number? Article does not mention.
- wdh505 2y agoUsually it is a proportion. 100k for 10% of the company is a 1M valuation
- lionkor 2y agoYes but that does not explain why better text prediction is worth $6B to these people
- JumpCrisscross 2y ago> that does not explain why better text prediction is worth $6B to these people Same reason Cohere has a weirdly-high valuation relative to revenue: it's a national champion.
- underyx 2y agoAny source for the 10% number?
- sodality2 2y agoThat sounds like an example to demonstrate the concept
- esafak 2y agohttps://www.saas-capital.com/blog-posts/private-saas-company-valuations-multiples/ https://www.saas-capital.com/blog-posts/private-saas-company... edit: If you're that curious just call Hemant up and ask him yourself?
- underyx 2y agoThis does not mention Mistral at all. Are all replies to me in this thread from LLM agents?
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- swyx 2y agohttps://www.ft.com/content/7a70a8a6-4a2a-47c5-8483-d0b829f32ae6 https://www.ft.com/content/7a70a8a6-4a2a-47c5-8483-d0b829f32...
- trybackprop 2y agoHere are three sources: Mistral AI employee: https://x.com/dchaplot/status/1800601722722935153 https://x.com/dchaplot/status/1800601722722935153 TechCrunch: https://techcrunch.com/2024/06/11/paris-based-ai-startup-mistral-ai-raises-640-million/ https://techcrunch.com/2024/06/11/paris-based-ai-startup-mis... Wall Street Journal: https://www.wsj.com/tech/ai/french-startup-mistral-ai-raises-650-million-in-bid-to-scale-up-22899937 https://www.wsj.com/tech/ai/french-startup-mistral-ai-raises...
- t-writescode 2y agoAll this external money raising when it comes to AI scares me. For companies that are built off these AI services, there's a very real fear that the prices we're getting on API calls aren't covering the costs of the requests themselves under some assumption that costs will magically go down, or we'll get locked in. I hope the companies like Mistral and OpenAI know that if they're selling API access below cost they could be the origin of a __lot__ of companies closing and choose to make sure their operating costs are sustainable. (I understand creating new features and new models taxes additional capitol and that's a perfectly fine use of VC money. But selling a $1.00 for $0.90 is dangerous and bad.)
- moomoo11 2y agoWhy’s that bad? If companies were building something that can be trivialized so easily that’s on them. Imo. A company can use whatever wrapper services but the business they serve should be smarter.
- ToucanLoucan 2y agoFear? That's been a fact as far as I've been aware since the big blowup back in mid '23. It got better, ish, with some of the updates they've dropped but it's still catastrophically losing money on every call. I'm guessing that's going to be the needle that finally pops this bubble, because as neat as a lot of shit going on with various models is, nobody is going to pay what it actually costs to run the things in order to have that neatness.
- t-writescode 2y agoCitation? Because I haven't been able to find any such thing in my research.
- ToucanLoucan 2y agoSome quick googling says OpenAI is losing $700,000 per day operating it's models, which some other quick googling say are processing roughly 10 million queries per day, which if we do quick back-of-napkin math is about 7 cents per query. Currently their lowest-tier price is $20/month, and limits users to 80 queries per hour. If we assume that 7 cents number and our hypothetical user actually uses those 80 queries for whatever odd reason, that's $5.60 it costs OpenAI, which if that user used them for say, 8 hours (the typical work day), that's $44.80 for OpenAI on a user who's only paid $20. And that's one day, that $20 currently gets them a month of access to that 80 queries per hour. I hope for the dream of profitability that they would get throttled at some point. So the user could, in theory, already render their subscription a net loss for OpenAI with 4 workdays of steady usage. And yes this is strictly back-of-napkin math here but it would explain why "OpenAI" and "bankrupt" keep appearing in the tech press over and over.
- dvt 2y agoMistral is one of the few AI companies I am extremely excited to see get better funded. I'm working on a local product (coming soon™) that uses Mistral-7B-Instruct-v0.2 under the hood. Parsing screen reader text (and taking actions, etc.) via local LLMs is, in my humble opinion, the future of computing. Even though getting it right is hard, and there's lots of edge cases, it's pretty awesome when it works. Mistral has been (by far) the most reliable model to date. I'm likely going to be fine tuning it over the next few months, but here it is working on Windows and MacOS in both web browser[1] and file manager[2] contexts. [1] https://vimeo.com/931907811 https://vimeo.com/931907811 [2] https://dvt.name/wp-content/uploads/2024/04/image-11.png https://dvt.name/wp-content/uploads/2024/04/image-11.png
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- candiddevmike 2y agoDo you currently or plan to pay Mistral for any of this? Trying to understand how they would make you a customer in the future.
- eitally 2y agoThe use case you described is essentially the future of all the RPA vendors, too. BluePrism, UIPath, Pega, Automation Anywhere, etc. They all started as screen scrapers & BPML parsers to "automate" processes. With the power of LLMs they become powerful enough to actually automate things (and also put hundreds of thousands of offshore manual tech laborers out of work). BPM automation supercharged by LLMs is systems integrators' nightmare.
- champagnepapi 2y agoLooks like Mistral AI just caught a $640 million mistral!
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- dash2 2y agoThat seems weirdly low given AI hype. Why is OpenAI worth more than ten times more?
- moffkalast 2y agoWhy not? OAI is still a year ahead of everyone else in R&D while Mistral doesn't currently offer any SOTA models.
- ganzuul 2y agoThere is very little "why" in stock market questions and much more "who".
- CesareBorgia 2y agoWith La Plateforme and Le Chat — whose names exude the elegance emblematic of the company’s French roots Bizzare
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