Microsoft said it will invest billions of dollars in computing infrastructure linked to Paris-based Mistral, an AI startup developing large language models and related tools, expanding access to locally controlled AI services in Europe.

Under the deal, Azure customers will be able to use Mistral’s data center in France, while Mistral’s Medium 3.5 and OCR 4 models have been connected to Microsoft Foundry, the company’s developer platform.

Microsoft Copilot Studio has also introduced Medium 3.5, and Azure Local customers will be able to run Mistral’s open models.

Microsoft president Brad Smith said the agreement does not involve a new equity investment in Mistral.

Mistral said in February 2025 it would invest billions of euros in its own data center in Essonne, south of Paris, to control more of its AI stack, and publicly available reports do not show Microsoft funding that buildout.

Analysts said the tie-up could help Microsoft serve regulated industries as Europe pushes for sovereign AI.

That focus goes beyond data residency to local control of infrastructure and models, and 62% of European organizations are seeking such solutions.

🔗 Source: Cailianshe