Microsoft partners with Mistral to invest billions in European AI infrastructure

Microsoft has partnered with French AI startup Mistral to invest billions of dollars in building AI computing infrastructure in Europe. As part of the agreement, Mistral's Medium 3.5 and OCR 4 models have been integrated into Microsoft's Azure AI Foundry and Copilot Studio. This partnership supports Europe's push for "sovereign AI" by offering regulated industries like finance and government an alternative to US-controlled infrastructure. It also helps Microsoft meet the growing market demand for open-source AI models. Mistral aims to build 1 gigawatt of AI computing infrastructure by 2030, though the exact investment amount from Microsoft remains undisclosed. The agreement does not include any new equity investment from Microsoft in Mistral.