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71% Positive
Analyzed from 4120 words in the discussion.
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#models#mistral#more#model#don#europe#frontier#chinese#companies#money
Discussion (153 Comments)Read Original on HackerNews
But I do care about capability and so far only Anthropic and, very recently with Astra, OpenAI can deliver on coding quality. And capability matters immensely. There is a world of difference between being able to do something and not being able.
First of all, they release the models' weights, perdonally I don't consider any other option as viable (no OpenAI and definitely no Anthropic, thank you).
I especially like their Vibe Chat web offer, the allowed monthly usage with a free account is incredibly generous (still have to hit a limit) and the deep research feature (5/month for free) is also valuable.
I don't know anything about the alleged regulation maxxing problems, I don't perceive them as a problem for my causal/personal usage anyway.
The two companies have read the market the same.
It's always very dangerous for first movers and their investors, and the commodification of intelligence seems even more likely each time a chinese open model release. It's less exciting to do business that way, but if you're building to stand the test of time, it's wiser that way.
Apple's strategy seems to be "wait till real business shakes out" but Mistral's strategy seems to be "go after profitable niches and avoid unwinnable fights".
I think what Mistral is doing is smart within their financial constraints, but this comparison is misleading. Mistral is an LLM company; Apple is a consumer hardware and services company.
It's smart for Apple not to join the LLM arms race, because they can just pick the cheapest supplier and let other companies take the financial losses. Mistral is in a very different situation; they are the supplier.
My American bank sold my credit card transactions to advertisers. My American mobile operator had insane fees for roaming and other features that are basic in Europe. Sending a bank transfer in America was unreliable and slow and expensive because there was nothing like SEPA instant 24/7 free transfer (I guess FedWire does that nowadays, I don’t know if consumers actually have guaranteed access at all banks like they do in EU).
When American AI companies become established Fortune 100 members, they’ll start abusing their customers just like all the others in that club, those banks and phone operators and Microsoft and the rest. Google once pretended to be different, now they have the corporate cancer. No reason to believe the same won’t happen to OpenAI and Anthropic.
Markets, left to their own devices, do not end up automatically being competitive in favor of consumers.
But above all, if AI wasn’t hyped as a threat to humanity, to jobs, to security, regulation could have been cautious.
To add insult to injury, given how voters are tired of technology, expecting a different move from governments is a losing bet.
I kept hearing the same about previous age tech and there also Americans rule the Internet: Google Search, Workspace or m365, AWS, Cloudflare... Even Linus moved to the US.
Every newly released model is paraded as SOTA showing peak or near peak performance on cherry-picked bendmarks the model was either fine-tuned on, or tested under specific conditions optimal for that model.
So not only outpriced, outperformed, but also outregulated.
Idk i wish there was some bright light in the future, but i dont see it
And with half the score of the top models, that's where Mistral is at.
You crazy to think that Fable and Astra capabilities is fake
Whether AI is hosted by the USA, Europe or China - they all are awful and eliminating real jobs while also driving up RAM prices etc... Why should I want to support any of these?
Where in the fuck did we stall out?
Especially as Chinese models are getting better Mistral is getting less and less relevant.
It pains me because I want them to succeed, but despite them denying it I believe they'll end up restrict their activity to (1) selling hosting for Chinese models (they're already hosting GLM) and (2) selling AI-related consultant service (they're also doing that already).
Which is interesting since who are the investors and what exactly are their roles? Samsung - European? BlackRock - European? Salesforce Ventures - European? Etc.
So yes it might well be
> [...] the largest equity fundraising round ever completed by a European technology company, three years after the company's launch.
but the money isn't European.
Also, €3B is nothing in this market, especially when you're competing with more efficient competitors. €3B in Europe is probably the same as €10B in the USA and €20B or €30B in China.
I disagree on that point. Models are getting good enough that you can switch them and barely notice. I'm switching between Opus, GPT Codex and GLM 5.3 for coding and I can barely tell the difference.
I think they'll become more like telcos than anything, selling a commodity. It's even truer when any provider can host open weight models like GLM-5.3.
Basically a world with dozens of Baseten, with AI labs having a hard time monetizing, just like editors of open source software.
> so if you don't have the most intelligent or cheapest model in the world, you're losing
So how does this match up to the fact that there is currently OpenAI and Anthropic, both raking in money? They can't both have the smartest model at the same time, can they? And all those inference companies selling API access to open weight models on OpenRouter, which are apparently also earning billions already? While the former are probably bound to have much higher cost for research and training than they are currently earning, which may be called "losing", the latter don't have that problem, they can simply price their API access such that the money earned covers their costs, no training and practically no research necessary. In your theory these companies shouldn't have a cent of earnings.
They are simultaneously first: the two leapfrog each other with regularity, and are meaningfully ahead of the competition.
There is no close second, because the AA Index points are expentially harder to get as you get closer to the first.
They have been focusing largely on government and business not consumer, which is fine. Perhaps coding is not something they want to achieve, but they do provide Codestral. It's a signal it's a market of interest to them.
You'd have to be the producer of the machine producing the mask. Or, even better, the software that produces the plan according to which a machine produces a mask.
LLMs embody value systems, and American and European values are not the same (yes, there are overlaps, but also key differences).
More nefariously, I can also imagine LLMs that silently degrade their reasoning when used in a national security context of a non-US country.
So, Mistral may not be competitive with OpenAI and Anthropic, but in many contexts that doesn’t matter. And, perhaps this gap could be closed with more funding (the three billion funding figure is a rounding error next to US labs). I’m sort of surprised that the EU isn’t stepping in to support them.
There are also some areas where values across Europe are quite divergent. Think LGBT rights and social acceptance, religion & secularism, immigration & multiculturalism.
And countries don’t fall into neat “liberal west vs conservative east”. Spain is exceptionally liberal on LGBT issues while remaining more religious than some northern countries; Denmark is socially liberal but has adopted relatively restrictive immigration policies.
Mistral's revenue is mostly B2B, and that's much more difficult to move.
Culture.
In terms of output, EU working culture is inferior to American/Chinese working culture.
Work life balance is irrelevant for frontier/sovereign AI.
Way to reduce a multi dimensional concept into a single scalar value. Care to explain what exactly make it inferior? Try using more than one word if you can.
I think the most of the money would go to purchase hardware, But I hope they can start making adequate compensation for AI engineers and researchers to move forward.
I don't trust anything the antichrist invests in
Mistral had open-weights SOTA when Chinese labs had no noteworthy LLMs at all, and now even its closed-weights offerings are behind half a hundred Chinese models -- most of them from labs with way less funding -- despite having had unhindered access to Nvidia hardware all this time.
I miss when "reality is stranger than fiction" was a cool phrase because it didn't happen all the time.
Here's a nice summary. Haven't read the book yet though it's on my list.
a16z is Humpty Dumpty and Temu Lex Luthor.
The antichrist is Greta Thunberg.
Taxation is not just about paying for the costs of the country, it is also about making sure that nobody has enough power to subjugate the will of the people. Monopolies, billionaires, the accumulation of such power is making the average citizen powerless. And you can feel it.
Taxation will not solve this before the global society collapses so the question is whether we figure out a way to level the power.
This is not evil, but a trait of human nature of corruption or addiction to power.
Taxation can and must solve it before "society collapses". And many people are working to solve the problem. It is difficult and requires effort but nothing that has not been done before. We got rid of king (by the will of god) in the past so techno-power-hungry cringey businessmen should be easier.
there is so such thing.
if there is it sure is very flexible and forgetful
Is that still a thing? Or have those would leave have left, after all, it's been ~6 years of Trump already.
Yes 90k is more than most French software companies pay, but the salary needs to be competitive with those US companies.
Germany is not so great either in that sense though at least in crypto sector, the pay was reasonable... Though as a job it was total BS.
UK was pretty good at some point (though all the really good jobs were gate-kept by IR35 regulations), The Netherlands was pretty good (especially contract roles thanks to big tax discounts for foreigners). But IMO, one of the best countries outside of the US for software work has been Australia. I actually came back to Australia because of it. Though it's not quite as lucrative today but it's certainly still much better paid than France and has potential.
Also, if given a choice of 90k eur in Paris vs let's say 2m usd in US I'm pretty sure suddenly most of the issues people have with US would suddenly disappear ;)
In the EU it seems we are very much at risk of being cut off from frontier AI if the US government should decide to do so.
They would if they could, which means they can‘t, even though they want to.
Maybe we need to abolish copyright?
Seriously "thought to be" is such a baseless statement. Thought to be by whom? And on what basis?
The bubble is going to burst soon.
I want my money back.
Not even a phone call :(
Anyway, the interview process was so janky it decreased my confidence in their success.
Not easy as it sounds yes, but it is better than throwing your CV into the ATS void 1000 times (the wrong way to apply for a job btw)
Mistral have no moat as it seems except some 'regulatory' moat.
The moat doesn't seem to exist. Probably safer to stay out of the race for now.
That paper released by a lone Google employee 3 years ago still misguiding people it seems.