French AI startup Mistral says ‘oui’ to app challenge targeting tech giants

French startup Mistral AI has launched a mobile app version of its generative AI assistant Le Chat, expanding its competition with established players like OpenAI‘s ChatGPT and newcomers like China’s DeepSeek.

Key developments: Mistral AI’s Le Chat assistant claims to be powered by the world’s fastest inference engines, capable of generating responses at speeds of up to 1,000 words per second.

• The Paris-based company, valued at 5.8 billion euros ($6.01 billion), has secured backing from AI chip leader Nvidia
• The app launch comes days before Paris hosts an AI summit
• Le Chat was previously only available through web browsers

Market position and user base: While Mistral AI has gained significant attention and funding, it still faces an uphill battle against established competitors in terms of user adoption.

• OpenAI’s ChatGPT boasts 200 million weekly active users
• Le Chat currently reports “several million subscribers”
• The company has secured partnerships with “several dozen” large companies, including French firm Veolia and the French jobs agency

Strategic focus: Mistral AI positions itself as a European alternative to Chinese and American AI offerings, emphasizing cultural relevance and accessibility.

• CEO Arthur Mensch, 32, highlights the importance of having European AI champions
• The company embraces an open-source approach, both contributing to and benefiting from shared technology
• Mistral AI has raised more than 1 billion euros in funding to date

Competition and collaboration: The AI landscape shows interesting dynamics of competition and cooperation among players.

• DeepSeek, a Chinese competitor, previously benefited from Mistral’s open-source technology
• Mistral maintains a collaborative stance toward open-source developments
• U.S. companies continue to dominate in terms of partnerships and market presence

Future outlook: While speculation about an IPO has emerged, CEO Mensch dismisses it as a short-term priority, focusing instead on building technological capabilities and market presence in Europe.

• The company is “very well-funded” according to Mensch
• Future partnerships with European authorities are in development
• The timing of the app launch appears strategic, coinciding with increased focus on AI development in Europe

European strategic implications: The emergence of Mistral AI as a serious European contender in the global AI race reflects growing recognition of the need for regional technological sovereignty, though significant challenges remain in catching up to U.S. and Chinese competitors’ market dominance.