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Mistral is an interesting AI company because they clearly have a contrarian business strategy to the other AI labs. They're also landing big customers in Europe for the right reasons. People dump on them because they're not benchmaxxxing which is pretty shortsighted - do you really want to be in a benchmark arms race with China, or do you want to make money and deploy sovereign AI compute in Europe?
When Apple is not racing for the frontier it's a strategy, but when it's Mistral it's a mistake.

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.

I am not sure it's correct to lump apple and Mistral's strategies together. Apple's business is selling hardware/services and their stores, but Mistral's business is AI.

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".

Well the only place they were ever able to compete with are open models, which is by definition completely unprofitable (unless they also want to compete with Vast or Openrouter as hosting for their models or something), so that sort of makes sense from the business side of things?
> When Apple is not racing for the frontier it's a strategy, but when it's Mistral it's a mistake.

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.

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Apple is in an entirely different market than Mistral (consumer electronics vs AI lab focusing on enterprise consulting). Which obviously means their optimal strategies are different. It doesn't really matter for Apple if it's Gemini or other model running behind their AI features. If anything it saves them a lot of money and provides a lot of flexibility.
One is a AI company first, the other has tons of other services and they can just buy those outright.
AI company not keeping up with AI companies is by no definition the same as combinedhardwaresoftwareservicesentertainmentlifestyletechcompany not keeping up with AI companies
I am baffled by the responses to this, not seeing that a similar strategy can be applied in a different field.
They aren't following the same strategy. Apple does race for the frontier in their main field: beautiful, well-integrated hardware and software. Mistral does not race for the frontier in their main field: AI creation. They're grabbing bits and bobs from people that need (or feel they need) sovereign AI. It's like if you go into making phones for the military. You aren't going for the best phones; you're going for making sure you're the only company that has the right connections to keep that customer.
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> When Apple is not racing for the frontier it's a strategy, but when it's Mistral it's a mistake.

Apple is a $4.7 trillion company selling computers and iPhones. How many computers and iPhones is Mistral selling?

In your comparison Apple is Apple while Mistral is orange.

Yea people tend to give Apple the benefit of the doubt because they’re the most successful and valuable company in human history.

Mistral is not Apple, and is not emulating their strategy. Please show me Mistral’s half a $Trillion in yearly revenue coming from consumer hardware/software.

Then I’ll agree with you that they’re taking the Apple strategy.

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I root for Mistral and hope they'll be successful, perhaps I'll buy a subscription too once they're good enough for coding aid (perhaps they are now, didn't do any test with their models recently).

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.

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I don't care about benchmarks. Benchmarks show that Opus 5 is a stronger model than Fable 5 which is obviously not the case.

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.

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They are regulationmaxxing instead of benchmaxxing, that's my problem with them.
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>They're also landing big customers in Europe for the right reasons.

We've been migrating all of our AI automations from Gemini to Mistral because of the fear of data transfer regulations. Maybe they don't apply to us (we don't really feed personal data to AI), but we can't afford to find out.

It's been quite annoying too because the Mistral documentation and dashboards are all over the place.

Fear of fines... that's not what I would call "the right reasons".

This is a bottom feeder mentality. Europe has enough bright people and resources to truly compete in the AI race. There is something wrong when the only selling point is that it's local.
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I also think their business model is interesting in that they can also serve Chinese models e.g GLM and fine tune them for enterprises.

which is a market Chinese labs won't get into.

they only other company they compete with is probably palantir in that regard.

Realistically they will have to deploy the Chinese models or their finetuned versions though since their models are completely out of date and not competitive. Outside of maybe government contracts it will be hard to compete against Azure/AWS who promise to run their models in EU datacenters and not store any data since actual companies normally prefer frontier models with decent performance (cost/performance is pretty decent as well if you are fine with e.g. Luna which is massively better than anything Mistral can offer).
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With how they’re currently being used we might as well call them bendmarks.

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.

How you know that they are not realy benchmaxxxing? Maybe they just have skill issue in this olimpics.
I tried them via OpenRouter. I loved their OCR. I really disliked their code generation. It was about six months ago -- so it was a geological era ago in this world. However Mistral is legally favored in Europe. In fact from my point of view , using them presents no trouble with GDPR (I live and work in Europe). I'm NOT a lawyer but I'm a technician that define itself 'privacy savy'.
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are you saying current frontier AI labs is benchmaxxxing and not because the AI model is good ?????

You crazy to think that Fable and Astra capabilities is fake

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I fail to see how this is relevant with regards to areas.

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?

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