Microsoft-backed G42 to develop AI infra with French startup Mistral AI

G42, the Abu Dhabi-based AI company backed by Microsoft, has joined hands with French startup Mistral AI to co-develop advanced artificial intelligence platforms and infrastructure, the companies announced Tuesday on the sidelines of the Choose France summit.

The alliance will span the full AI value chain—from training foundation models and developing AI agents to deploying infrastructure and creating industry-specific solutions across Europe, the Middle East, and the Global South, the firms said in a joint statement.

In February this year, the UAE and France had supported broader AI cooperation agreements. The latest announcement underscores the growing momentum between the two nations in shaping a future where artificial intelligence is open and accessible to all, the two companies said a statement.

G42’s group CEO Peng Xiao said the partnership between the two companies exemplifies a new model of AI development that balances sovereignty with interoperability and ambition with accountability.

“Together with Mistral AI, we’re not just building technology, we’re laying the groundwork for a digitally interdependent future where trust and transparency are non-negotiable,” Xiao added.

Integration of Mistral AI’s platform with G42’s AI stack will be developed with technical autonomy and IP governance designed to protect innovation while enabling scalable deployment. The companies will also explore opportunities to promote each other’s offerings in both respective existing and new international markets.

Microsoft had invested $1.5 billion in G42 in April 2024 to fund the latter’s global expansion and AI development efforts.

 “G42 is a partner who shares our commitment to making powerful, open AI accessible to all. This alliance not only accelerates our journey but also ensures that the benefits of AI extend beyond traditional tech hubs,” said Arthur Mensch, co-founder and CEO of Mistral AI.

Mistral AI will also explore collaboration opportunities with the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), the world’s first AI university based in Abu Dhabi, across advanced research and development in frontier foundation models, talent development, and the translation of cutting-edge research into real-world AI solutions, as part of the collective efforts in supporting the next-generation AI platforms and infrastructure.

“We look forward to working with Mistral AI and G42 to advance AI technology in the areas of next-generation foundational models, energy-efficiency and safety,” said Eric Xing, President and University Professor, MBZUAI. “Our shared values around driving innovation, collaboration, accessibility and inclusion make us ideally suited to drive research advancements in the field of AI to the benefit of all.”