Mistral is having a moment. With access to less funding and fewer compute resources than OpenAI and Anthropic, the French AI lab has lagged behind its American rivals in model performance. But recent turmoil stateside has created a window of opportunity. In June, the Trump administration placed restrictions on the distribution of models from Anthropic and OpenAI, giving Europe a glimpse of an unwelcome future in which its access to bleeding-edge AI could be suddenly revoked.

A few weeks later, one of OpenAI’s models broke loose from a testing sandbox and hacked multiple companies; Anthropic then revealed that its models had engaged in similar behavior. The incidents revived a long-running debate over safety risks tied to proprietary, closed-weight models, whose inner-workings are a closely guarded secret.

Mistral frames itself as the antidote: a Europe-based alternative to the American labs, whose models—most of which are published under an open source license for anybody to use—cannot escape scrutiny or be switched off unilaterally. “If you don’t end up in a situation where most people are building open source, you’re giving way too much power to companies that are going to become state-like—that will behave in a very aggressive way to make sure that nobody can compete,” Mistral CEO Arthur Mensch told a packed room at an AI conference in Paris last month. “The alternative to open source winning is actually a pretty dark world.”

Mensch’s argument is self-serving, but effective. Last September, Mistral raised almost $2 billion at a $13.5 billion valuation; it's reportedly teeing up another raise that will bump that figure to $23 billion. The lab’s revenue has reportedly increased twenty-fold in the last year, helped along by deals with the French government, Microsoft, HSBC, and others.

The recent surge in the adoption of open-weight models is part of that picture. One of few ways that European businesses can guarantee undisrupted access to AI, Mensch argues, is to run open-weight models on domestic infrastructure. “Everybody outside the US and China should participate in the open source ecosystem, because it takes leverage away,” says Nicolas Granatino, founder of startup accelerator StemAI, who holds a stake in Mistral in a personal capacity.