(Bloomberg) -- Mistral AI, the Paris-based artificial intelligence startup, has raised €385 million ($415 million) that will go toward advancing its open-source software and to create a European rival to US tech giants. 

The round was led by Silicon Valley venture capital firm Andreessen Horowitz and initial backer Lightspeed Ventures, the company said in a statement on Monday. The round values the company at about $2 billion, Bloomberg has reported. 

The funding round marks a dramatic rise for the seven-month-old AI startup, which was founded by former scientists from Alphabet Inc.’s DeepMind and Meta Platforms Inc. who’d worked on large language models similar to those offered by OpenAI Inc.

“Since the creation of Mistral AI in May, we have been pursuing a clear trajectory: that of creating a European champion with a global vocation in generative artificial intelligence, based on an open, responsible and decentralized approach to technology,” Chief Executive Officer Arthur Mensch said in the statement. 

Mistral makes open-source software that powers chatbots and other generative AI tools. The company said it is testing its infrastructure for general availability in early 2024 with new customization features.

Several other investors also participated in the round including: Salesforce Inc., BNP Paribas and CMA CGM, General Catalyst, Elad Gil, Emerson Collective, Conviction, Bpifrance, La Famiglia, Eric Schmidt, New Wave, Motier Ventures, and Sofina.

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