Mistral AI Calls on Telcos to Become Hyperscalers

Mistral AI Calls for European Investment in Data Centers

At Mobile World Congress in Barcelona, Mistral AI’s CEO, Arthur Mensch, advocated for increased investment in data center infrastructure across Europe. He urged attendees, representing the world’s largest gathering of telecoms professionals, to actively participate in “becoming hyperscalers” and bolstering the regional AI ecosystem.

Responding to inquiries about the adequacy of AI investment within Europe, Mensch stated his company would greatly benefit from expanded domestic data center capacity. He highlighted Mistral’s own initiative to construct a data center in France, noting a strategic move “down the stack” to better serve these facilities.

Decentralizing the Cloud and Reducing Reliance on US Tech

Mensch posited that the AI revolution presents an opportunity to decentralize cloud computing. He championed the inclusion of “more actors in the field,” contrasting this with the current dominance of Amazon, Google, and Microsoft within the cloud market.

He also encouraged European companies to prioritize purchasing technology from local sources whenever feasible. However, Mensch acknowledged the necessity of remaining “pragmatic,” as suitable non-U.S. alternatives are not currently available for certain essential technological infrastructure.

Navigating EU Regulation and Market Fragmentation

When questioned about the potential benefits of mirroring the Trump administration’s regulatory cuts, Mensch refrained from direct criticism of regulations like the EU’s AI Act. Instead, he identified market fragmentation across the 27 EU Member States as a more significant challenge for businesses.

“As a startup, we are not overly concerned with the regulation itself,” Mensch explained. “The primary difficulty in Europe stems from the fragmented nature of the market.”

Telecoms Consolidation and Network Upgrades

Mensch expressed support for consolidation within the European telecoms sector. He suggested that a reduction in the number of telcos per EU market would streamline partnership negotiations. This consolidation, he believes, “could be an asset” to larger tech players.

He outlined potential collaborations with telecoms companies regarding network upgrades. These upgrades are necessary to accommodate the increasingly “personalized” data streams that AI will generate, representing a key area of business for the AI startup.

Distribution Partnerships and Cost Reduction

Furthermore, Mensch indicated opportunities for establishing “distribution partnerships” within the industry to ensure broad access to robust AI systems. This would “make sure that everyone has access to strong AI systems.”

AI also presents a pathway for telecoms companies to lower their operational costs, Mensch added.

EU AI Act and Future Model Specialization

Regarding the EU AI Act, Mensch stated the current situation is “workable – it’s not ideal.” He also noted a positive “change of perspective” among EU policymakers regarding the importance of AI investment.

“I think the EU AI Act came a little too early, and it’s too focused on the technology side,” Mensch commented. “Consequently, we face challenges in finding technological solutions for its implementation. We are collaborating with regulators to address these issues.”

Looking ahead, Mensch predicted a trend towards increasingly “specialized” AI models.

Capturing Interaction Data for Enhanced Models

Over the next two years, Mistral will prioritize the collection of data from all interactions between AI models and users. This data will be instrumental in developing more refined models, ultimately leading to the creation of “specialized AI systems that will be your own,” according to Mensch.

Mistral has already established a distribution agreement with Free in France for its AI assistant, Le Chat. Free subscribers enjoy complimentary access to Le Chat Pro for one year, followed by standard subscription fees. Notably, Free is owned by Iliad, a telecoms firm controlled by Xavier Niel, who also invests in Mistral.