Arthur Mensch, tall and lean with a flop of unkempt hair, arrived for a speech last month at a sprawling tech hub in Paris wearing jeans and carrying a bicycle helmet. He had an unassuming look for a person European officials are counting on to help propel the region into a high-stakes match with the United States and China over artificial intelligence. Mensch, 31, is the CEO and a founder of Mistral, considered by many to be one of the most promising challengers to OpenAI and Google. "You have become the poster child for AI in France," Matt Clifford, a British investor, told him onstage. A lot is riding on Mensch, whose company has shot into the spotlight just a year after he founded it in Paris with two college friends.

Microsoft announced an artificial intelligence partnership Monday with the French startup Mistral AI that could lessen the software giant's reliance on ChatGPT-maker OpenAI for supplying the next wave of chatbots and other generative AI products. Mistral AI emerged less than a year ago but is already what Microsoft described Monday as an "innovator and trailblazer" at the vanguard of building more efficient and cost-effective AI systems. Microsoft and Mistral didn't disclose the financial terms of the deal, though Microsoft said it involves a small investment in the Paris-based startup. That suggests it is far smaller than Microsoft's investment of billions of dollars into OpenAI, a years-long relationship that has attracted the scrutiny of antitrust regulators in the U.S. and Europe. Mistral on Monday released a public test version of its own chatbot, called Le Chat, that apparently was flooded with so much interest that a company executive said it was temporarily unavailable for part of the day.

Arthur Mensch is one of a new generation of entrepreneurs hoping to solve a longstanding problem with the European economy: its failure to produce a Silicon Valley-style tech behemoth. The 31-year-old Frenchman is chief executive of Mistral, a startup that achieved a €240m (£206m) valuation in its first round of financing – four weeks after it was founded. And he believes artificial intelligence (AI) will be the great leveller, putting Europe on a par with its previously uncatchable competitors across the Atlantic. Mistral develops large language models – the technology that underpins AI tools such as ChatGPT – and Mensch believes this could hand the initiative to a continent producing a new wave of fast-moving startups. "Given the new tools we have to hand, like large language models, everything has to be rebuilt around them. When something has to be rebuilt, it gives new players an advantage because they can go fast," he says.