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Mistral AI made two major announcements today. The French startup introduced a new language model that delivers top performance while cutting costs significantly. They also launched an enterprise-grade chat platform to help companies implement the technology.
The new Mistral Medium 3 model matches or exceeds 90% of Claude Sonnet 3.7's benchmark performance while costing eight times less. At $0.40 per million tokens for input and $2 for output, it undercuts most competitors on price while maintaining elite-level capabilities.
But Mistral isn't just competing on cost. The model shines particularly bright in coding and STEM tasks, going toe-to-toe with much larger and slower rivals. It's also remarkably flexible - companies can run it on as few as four GPUs, whether in the cloud or their own data centers.
This balance of performance and efficiency didn't happen by accident. Mistral has consistently squeezed more capability out of smaller models, from their original 7B release through to today's Medium 3. Their secret sauce? A laser focus on model architecture and training efficiency rather than just throwing more parameters at the problem.
The company wasted no time putting their new model to work. Alongside Medium 3, they announced Le Chat Enterprise - a feature-rich AI assistant built to tackle common business challenges. It connects to company data sources like Google Drive and SharePoint, lets teams build custom AI agents, and can be deployed anywhere from public cloud to private infrastructure.
Le Chat Enterprise aims to solve the fragmentation that plagues many corporate AI deployments. Instead of juggling multiple tools, companies get one platform that handles everything from data analysis to coding to content creation. It works with both technical and non-technical users, and includes enterprise-grade features like audit logging and granular access controls.
Mistral is making these tools widely available. The Medium 3 API launches today on their own platform and Amazon SageMaker, with IBM, NVIDIA, Microsoft, and Google partnerships in the pipeline. Le Chat Enterprise is live on Google Cloud Marketplace and heading to Azure and AWS soon.
As companies rush to integrate AI into their operations, they're hitting roadblocks with existing solutions - they're either too expensive, too rigid, or too disconnected from their existing systems. Mistral's offering tackles all three problems head-on.
And they're not done yet. The company dropped a none-too-subtle hint about an upcoming "large" model that will build on Medium 3's efficiency gains. Given how their medium-sized model already outperforms flagship open-source options like Llama 4 Maverick, the AI industry might want to buckle up.
Why this matters:
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