Welcome to the forefront of conversational AI as we explore the fascinating world of AI chatbots in our dedicated blog series. Discover the latest advancements, applications, and strategies that propel the evolution of chatbot technology. From enhancing customer interactions to streamlining business processes, these articles delve into the innovative ways artificial intelligence is shaping the landscape of automated conversational agents. Whether you’re a business owner, developer, or simply intrigued by the future of interactive technology, join us on this journey to unravel the transformative power and endless possibilities of AI chatbots.
News
April 23, 2026
Daphné Leprince-Ringuet
2 min read
US billionaire Elon Musk’s startup xAI has reportedly held discussions for a potential partnership with Paris-based model developer Mistral AI in recent weeks.
According to Business Insider, which cites people familiar with the matter, the US AI giant looked into a three-way partnership with Mistral and buzzy code-editing startup Cursor, which is based in San Francisco. Earlier this week SpaceX, which owns xAI, announced it had struck a deal giving it the rights to acquire Cursor for $60bn.
Mistral, which launched in 2023, is one of Europe’s most highly-valued AI startups, with an €11.6bn valuation. The startup builds AI models and infrastructure, and is considered one of the region’s only competitors against US Big Tech giants in the field.
Mistral and xAI did not immediately respond to a request for comment.
According to the reports Musk proposed the partnership as part of xAI’s efforts to catch up with fast-growing competitors like OpenAI and Anthropic.
xAI, which is behind AI chatbot Grok, was acquired by Musk’s spacetech company SpaceX in February for $250bn. The AI startup is building several large-scale AI infrastructure projects such as the Colossus supercomputer in Memphis. It reportedly lost $6.4bn in 2025, up from $1.56bn in 2024, according to the Financial Times.
Anthropic, the maker of AI chatbot Claude, was recently reported to have surged to a trillion-dollar valuation on secondary markets, while last month OpenAI raised $122bn at an $852bn valuation.
Since launching in 2023 Mistral has raised nearly €2.8bn ($3.2bn), reaching an €11.6bn valuation ($13.6bn) last year when it secured a €1.7bn ($2bn) Series C led by Dutch semiconductor equipment manufacturer ASML.
Devendra Chaplot, an AI research scientist who was a member of Mistral’s founding team between 2023-25, joined xAI as a member of technical staff two months ago, according to his LinkedIn profile.
Editor's picks
Opinion
European founders are obsessed with Silicon Valley. Here’s why I’m not
Podcast
OpenAI's Laura Modiano on hackathons, Lovable and how startups can partner with the tech giant
News
EIF launches €15bn fund of funds to back 100 growth-stage VCs
Daphné Leprince-Ringuet
Daphné Leprince-Ringuet is a senior reporter for Sifted, based in Paris. She covers French tech and writes Sifted’s AI and Deeptech newsletter . You can find her on X and LinkedIn
Stay one step ahead with news and experts analysis on what’s happening across startup Europe.
Recommended
Pro
11 AI operators to watch in Europe
Here are the AI operators you need to know about
Freya Pratty
Lovable CEO apologises after security scare: ‘I take accountability’
Cofounder Anton Osika says product decisions ‘out of touch’ with user expectations
Martin Coulter
Synthesia announces major hiring push, opens three new offices
The AI video platform is opening new offices in Austin, Paris and Berlin
Daphné Leprince-Ringuet
© 2026 Sifted EU Ltd. All Rights Reserved.
