Microsoft (NASDAQ: MSFT) and Mistral announced an expansion of their strategic partnership on July 21, 2026, centered on a multibillion-dollar agreement to increase AI infrastructure capacity in Europe.

Under the agreement, Microsoft will leverage Mistral's expanded Europe-based GPU infrastructure, which draws on thousands of NVIDIA Vera Rubin GPUs, to support the delivery of Microsoft's cloud and AI services. Microsoft said the arrangement is consistent with its broader approach of combining its own datacenters, leased facilities, and third-party collaborations.

At the product level, Mistral's Medium 3.5 and OCR 4 models are now available in Microsoft Foundry, and Mistral Medium 3.5 has been added to Microsoft Copilot Studio. The models support agentic applications, document-processing pipelines, and domain-specific workflows.

The partnership also extends deployment options across cloud, cloud-connected, and fully disconnected environments through Azure and Azure Local, targeting regulated industries such as financial services, healthcare, and manufacturing.

Brad Smith, Vice Chair and President of Microsoft, said the arrangement is tied to the European Digital Commitments the company announced in 2025. Arthur Mensch, Co-Founder and CEO of Mistral, said the partnership allows Mistral models to reach enterprises and public institutions at global scale.

The companies said they will pursue a joint go-to-market plan, fund proofs of concept, offer Azure credits, and conduct workshops to support customer adoption across Europe and globally.