Microsoft and Mistral AI announced a major expansion of their strategic alliance on Tuesday, committing billions of euros to bolster the French startup's data center capacity across Europe.
Under the agreement, Microsoft will use capacity from Mistral's Europe-based infrastructure to deliver its cloud and AI services, while Mistral plans to expand its facilities with thousands of Nvidia Vera Rubin graphics processors. The deal, tied to Microsoft's European Digital Commitments from 2025, carries no new equity investment in Mistral, which is separately seeking to raise roughly €3 billion at a €20 billion valuation.
Mistral's latest flagship models, Medium 3.5 and OCR 4, have been added to Microsoft Foundry, with Medium 3.5 also available in Copilot Studio. Customers can run these models in Azure's public cloud, on-premises, or in fully disconnected environments.