Paris-based generative AI darling Mistral has inked a €100m multi-year contract with French shipping and logistics giant CMA CGM to identify new AI use cases within the business and develop tailor-made models and agents.
AI usage is up in maritime industries, with businesses applying the technology to a range of tasks, including optimising routes, managing cargo and monitoring ship maintenance. A report from maritime tech startup Orca AI last year found some companies could save around $100,000 in fuel costs per vessel every year through AI-optimised travel routes.
The deal, which extends over five years, will see Mistral dispatching a dedicated team to CMA CGM’s HQ in Marseille in the south of France.
CMA CGM, which is an investor in Mistral, is one of the largest shipping and logistics companies in the world. It also owns a media group, CMA Média, which runs French media outlets like TV channel BFM.
As part of the partnership Mistral will develop models for use cases across both entities. The startup, which launched in 2023, has become Europe’s strongest contender in the race to build generative AI players that can compete with US giants like OpenAI.
The move is likely to resonate as many founders and investors point to the absence of large investments from Europe’s biggest corporations in homegrown tech — which is seen as a key component to developing the region’s startup ecosystem.
Mistral CEO Arthur Mensch said: “Our partnership is intended to serve as a model for how AI can be structurally embedded within organizations to enhance Europe’s competitive edge.”
The contract is also a significant boost to Mistral’s revenues: in 2024 the company hit €30m in annual recurring revenues (ARR).
What will Mistral do for CMA CGM?
One team will be created to work on use cases in CMA CGM’s main shipping and logistics business, with an initial focus on automating customer services like responding to claims.
Another team, also based in Marseille, will focus on CMA Média. Working with journalists and media experts, it will develop fact-checking and content management applications.
CMA CGM says it is particularly interested in Mistral’s AI agents technologies — tools that can act autonomously to complete a set of tasks.
Six Mistral employees are already operational within CMA CGM, with more expected to join as new projects develop. Mistral currently has over 200 employees.
CMA CGM has AI partnerships with a number of other providers including Google, which focuses on improving operations thanks to digital twins and shipping route optimisation.
Investing in AI
CMA CGM is a family-owned business currently led by French billionaire Rodolphe Saadé, who over the past few years has shown increasing interest in French tech and AI.
Through Zebox Ventures, an early-stage VC fund entirely funded by CMA CGM, Saadé has backed some of France’s hottest AI startups, including Mistral, Poolside and Nabla.
He also launched, alongside French billionaire Xavier Niel and ex-Google CEO Eric Schmidt, a non-profit lab dedicated to AI research in Paris, dubbed Kyutai, in 2023.
CMA CGM says that the company’s total investments in AI to date total €500m.
Read the orginal article: https://sifted.eu/articles/mistral-ai-cma-cgm-100m-deal/
