Microsoft, Mistral Expand AI Partnership With New Europe Compute Deal

Microsoft is expanding its AI partnership with French company Mistral through a new multibillion-dollar Europe compute agreement aimed at scaling AI infrastructure. The deal adds GPU capacity using Nvidia’s latest Vera Rubin systems to increase availability for training, inference and large-scale deployment. Microsoft said it will use that capacity to support its cloud and AI services, and to bring Mistral’s frontier models onto Microsoft platforms for enterprises and regulated industries seeking more control over data and operations. Mistral’s Medium 3.5 and OCR 4 models are available in Microsoft Foundry, with Medium 3.5 also offered in Copilot Studio. Both companies plan joint go-to-market efforts and will fund proofs of concept, including Azure credits, while allowing deployment in Azure cloud, connected and fully disconnected Azure Local environments. Microsoft shares were down 0.64% at $399.83 on Nasdaq.