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Mistral AI Launches Free Tier to Compete with Google

Mistral AI, a Paris-based startup valued at $6 billion, has launched a free tier to attract developers. The move comes as advanced large language models (LLMs) are becoming increasingly commoditized, and Mistral is aiming to compete with plummeting prices from OpenAI, Google, and Anthropic.

Free Tier for Developers

The new free tier is available through Mistral's API-serving platform, la Plateforme. Developers can experiment, evaluate, and prototype with Mistral's AI models without any cost. However, developers may need to upgrade to Mistral's paid commercial tier for production use.

Why Offer a Free Tier?

• Mistral claims to have "open" AI models, but setting up the infrastructure to host these models can be complex.
• le Plateforme provides a simpler experience for developers and encourages them to build on Mistral's platform, making it easier to upsell higher rate limits.

Competing with Google and OpenAI

Google and OpenAI also offer free tiers for developers, but these typically have lower rate limits than their paid tiers. Mistral's move is a direct response to this growing competition in the AI model provider space.

Lowered Pricing for API Endpoints

Mistral has also slashed prices for accessing its AI models through API endpoints. Mistral NeMo, Mistral Small, and Codestral prices have been reduced by over 50%, while Mistral Large's price has been cut by 33%.

Multimodal Model Available on le Chat

Mistral's first multimodal model, Pixtral 12B, is now available on le Chat. This model can process both images and text, allowing users to scan, analyze, and search image files.

Mistral's Strategy for Growth

Mistral is clearly focused on attracting developers by offering a free tier, lowering prices, and developing innovative AI models. This strategy aims to position the company as a leading player in the competitive AI model market, competing directly with companies like Google and OpenAI.