Microsoft strikes 'multi-billion dollar' deal for Mistral's AI computing power

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Paris: Microsoft and French artificial intelligence developer Mistral announced a multi-billion dollar deal on Tuesday, granting the U.S. tech giant access to Mistral's European computing infrastructure.

The agreement provides Microsoft with Europe-based graphics processing unit (GPU) infrastructure to expand its AI development capacity and support cloud services across the region. Both companies confirmed the strategic partnership in a joint statement, though specific financial terms and computing limits were not disclosed.

Additionally, Mistral’s specialized AI models, including programming assistant Mistral Medium 3.5 and OCR 4, will become directly accessible to Microsoft clients. Enterprise customers can deploy these models on local hardware or through cloud systems, addressing ongoing European data sovereignty concerns.

The agreement follows a growing trend of major AI firms sharing computing resources as high-end chips become increasingly scarce. Mistral is expanding its infrastructure footprint with a $1.4 billion investment in Swedish data centers.