A New AI Powerhouse Enters the Fray

Dear Reader,

Artificial intelligence is one step closer to world domination.

Well, maybe not quite domination… but definitely globalization, as this week’s biggest AI news comes from France.

So, in today’s Market 360, let’s dive into the details of the latest AI competitor to take its place on the world stage… and how you can ensure you’re investing in the best AI stocks heading into the new year.

Mistral AI Takes Center Stage

On Monday, Paris-based Mistral AI said it raised 385 million euros ($414.41 million) in its second funding round.

The round was led by well-known U.S. venture capital investors, such as… such as Andreessen-Horowitz (a16z) and LightSpeed Ventures. Mistrial’s backers include NVIDIA Corporation (NVDA), Salesforce Inc. (CRM) and BNP Paribas (BNPQY), among others. The round values the company at around 2 billion euros (or $2.2 billion). This puts the French startup in league with the top AI companies in the world.

However, this is not the first time the company has made headlines…

Mistral was founded by a trio of former Meta Platforms, Inc. (META) and Alphabet Inc.(GOOG) AI researchers. This summer, the company raised 105 million euros ($113.4 million) just one month after launching.

At the time, Arthur Mensch, Mistral’s president, said, “We are proud to initiate this global project from France, our home country, and to contribute, at our level, to the emergence of a credible new player in generative artificial intelligence from Europe.”

So far, it is indeed turning out to be a credible new player. The company recently launched Mixtral 8x7B, its large language model (LLM). The model is so named because it uses a technique known as the “Mixture of Experts” (MOE).

As TedAI defines, MOE “is a machine learning technique that involves training multiple models, each specializing in a different part of the input space,” which “allows the model to leverage the strengths of each expert, leading to improved overall performance.” The model’s applications can be used for image recognition, natural language processing, and recommendation systems.

Right now, though, Mistral’s LLM is still in its beta stage. It is expected to be available in early 2024.

But if Mixtral 8x7B is successful, it could be Europe’s answer to popular U.S.-based AI platforms that power OpenAI’s ChatGPT and Google’s Bard. Thus far, Paris has straggled behind New York and Silicon Valley as a major center for AI technology and development.

If that changes, it will probably be thanks to Mistral.

In further news, Mistral has teamed up with Google to distribute its LLMs on its Google Cloud infrastructure. In a joint statement made this week, the companies said:

As part of the agreement, Mistral AI will use Google Cloud’s AI-optimized infrastructure, including TPU Accelerators, to further test, build, and scale up its LLMs (large language models), all while benefiting from Google Cloud’s security and privacy standard.

Mistral’s rise has certainly been a rapid one. At less than seven months old, the startup has already established itself as a potential leading AI player – and rival – on the world stage.

How To Profit From AI (And More) In 2024

Although AI may not be dominating the world (yet), it will certainly have a big economic impact. And if you invest wisely, you could be poised to benefit.

That’s why, when I sat down with my fellow InvestorPlace colleagues Eric Fry and Luke Lango for our special Early Warning Summit 2024 on Tuesday night, we discussed the economic impact AI will have across the globe.

And folks, it’s staggering…

Some estimates go as high as $88 trillion over the next few years, or even $150 trillion when factoring in everything that will be impacted by AI over the coming decade.

No matter how you view the numbers, the impact is undeniable.

Now, all three of us are very bullish on AI stocks for the foreseeable future. However, just because the AI industry is set to continue its boom doesn’t mean every AI stock is a good buy. The same goes for stocks in every corner of the market.

So, at our Early Warning Summit 2024 , we also discussed how to ensure you’re putting your money in the absolute best place in 2024 – AI and otherwise.

By understanding what will likely unfold in the markets next year and taking the appropriate steps now, you’re putting yourself in the best possible position to make 2024 one of your most profitable years yet.

For those who were unable to view this summit when it aired, a replay of the event is available for your viewing.

Click here to watch a replay of our special Early Warning Summit 2024 event now.

Sincerely,

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

NVIDIA Corporation (NVDA)