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    Mistral, a French A.I. Start-Up, Is Valued at $6.2 Billion

    Created by alumni from Meta and Google, Mistral is just a year old and has already raised more than $1 billion from investors, leading to eye-popping valuations.Mistral, a French artificial intelligence start-up, said on Tuesday that it had raised 600 million euros, or about $640 million, from investors, a sign of robust interest in a company seen as Europe’s most promising rival to OpenAI and other Silicon Valley A.I. developers.Mistral is now valued at €5.8 billion, according to a person familiar with the investment, an eye-popping sum for a company founded just one year ago by alumni from Meta and Google. The company’s valuation has roughly tripled since December when it raised €385 million.Investors in the latest round included the venture capital firms General Catalyst, Andreessen Horowitz and Lightspeed Ventures, as well as Nvidia, Samsung, Salesforce, Cisco, IBM and BNP Paribas.Since OpenAI released ChatGPT in November 2022, investors have poured money into generative A.I. technology, which can answer questions in humanlike prose, create images and write software code. Two weeks ago, Elon Musk raised $6 billion for his start-up, xAI. OpenAI has raised roughly $13 billion from Microsoft, while another California start-up, Anthropic, has raised more than $7.3 billion.Mistral has positioned itself as a European alternative to the larger American tech giants and boasts that its products like the chatbot, Le Chat, are strong in a wider range of languages, including English. In contrast to firms like OpenAI and Anthropic, Mistral subscribes to the view that A.I. software should be open source, meaning that the programming codes should be available for anyone to download, copy, tweak and repurpose. Meta has also made its A.I. code open source.In a sign of A.I.’s growing geopolitical significance, President Emmanuel Macron of France and others in the French government have given the company their full-throated support. Mr. Macron has called Mistral a sign of “French genius” and invited the company’s chief executive, Arthur Mensch, to dinner at the presidential palace.On Tuesday, Mr. Mensch said in a statement that the latest investment would help keep the company independent and fuel its expansion. More

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    American Firms Invested $1 Billion in Chinese Chips, Lawmakers Find

    A Congressional investigation determined that U.S. funding helped fuel the growth of a sector now viewed by Washington as a security threat.A congressional investigation has determined that five American venture capital firms invested more than $1 billion in China’s semiconductor industry since 2001, fueling the growth of a sector that the United States government now regards as a national security threat.Funds supplied by the five firms — GGV Capital, GSR Ventures, Qualcomm Ventures, Sequoia Capital and Walden International — went to more than 150 Chinese companies, according to the report, which was released Thursday by both Republicans and Democrats on the House Select Committee on the Chinese Communist Party.The investments included roughly $180 million that went to Chinese firms that the committee said directly or indirectly support Beijing’s military. That includes companies that the U.S. government has said provide chips for China’s military research, equipment and weapons, such as Semiconductor Manufacturing International Corporation, or SMIC, China’s largest chipmaker.The report by the House committee focuses on investments made before the Biden administration imposed sweeping restrictions aimed at cutting off China’s access to American financing. It does not allege any illegality.Last August, the Biden administration banned U.S. venture capital and private equity firms from investing in Chinese quantum computing, artificial intelligence and advanced semiconductors. It has also imposed worldwide limits on sales of advanced chips and chip-making machines to China, arguing that these technologies could help advance the capabilities of the Chinese military and spy agencies.Since it was established a year ago, the committee has called for raising tariffs on China, targeted Ford Motor and others for doing business with Chinese companies, and spotlighted forced labor concerns involving Chinese shopping sites.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Peter Thiel, Major U.S. Political Donor, Is Said to Pursue Maltese Citizenship

    Obtaining citizenship in Malta would provide another passport for Mr. Thiel, who is one of the largest individual donors for the U.S. midterm elections.VALLETTA, Malta — At the end of a narrow road, past crushed beer cans and the remnants of a chain-link fence, a weathered sandstone building overlooks the Mediterranean coast. The British tourist who answered the door of a third-floor apartment had no idea she was staying at the residence of one of the world’s richest men.Peter Thiel, the billionaire and Republican political patron, has declared the two-bedroom apartment that he rents himself as his address while he works toward a goal he has pursued for about a year: becoming a citizen of the tiny island nation of Malta, according to documents viewed by The New York Times and three people with knowledge of the matter.Mr. Thiel, 55, is in the process of acquiring at least his third passport even as he expands his financial influence over American politics. Since backing Donald J. Trump’s 2016 presidential campaign, the technology investor has become one of the largest individual donors in the midterm elections next month, spending more than $30 million on more than a dozen right-wing Congressional candidates who have decried globalization and pledged to put America first.The Malta apartment building that Mr. Thiel has listed as his residential address on the island.Ryan Mac/The New York TimesMr. Thiel has long expressed deep dissatisfaction with what he perceives as America’s decline, railing against bureaucracy and “a completely deranged government” ruled by elites. To address that, he has funded fellowships to push people to drop out of school and start businesses and supported political candidates who would push the country in his preferred direction.All along, Mr. Thiel has also hedged his bets. That includes obtaining foreign passports — Mr. Thiel was born in Germany and holds American and New Zealand passports — that would let him live abroad. He has sought to build a remote compound in a glacier-carved valley in New Zealand, and supported a “seasteading” group that aims to build a city on floating platforms in international waters, outside the jurisdiction of national governments.Through a spokesman, Mr. Thiel, who co-founded the digital payments company PayPal and was Facebook’s first professional investor, declined to comment. His net worth stands at $4.2 billion, according to Forbes.There is no obvious tax benefit to Mr. Thiel to gaining Maltese citizenship, lawyers and immigration experts said, though wealthy Saudi, Russian and Chinese citizens sometimes seek a passport from the island nation for European Union access and to hedge against social or political turmoil at home.It is unclear why Mr. Thiel’s nominal residence in Malta is listed as a 185 euro-a-night vacation rental on Airbnb. Maltese naturalization laws are straightforward for those who can pay more than €500,000 for a passport, but they prohibit would-be citizens from renting out their official residences while their passport application is pending.What is clear is that a Maltese passport would give Mr. Thiel an escape hatch from the United States if his spending doesn’t change the country to his liking. He has started developing business connections in Malta, and is a major shareholder in at least one company registered there in which his husband, Matt Danzeisen, is a director.Mr. Thiel has backed his friend J.D. Vance, who is running for the Senate in Ohio. Mr. Thiel previously employed Mr. Vance.Scott McIntyre for The New York TimesIn the United States, the bulk of Mr. Thiel’s political donations have gone to support two friends who previously worked for him: J.D. Vance, a Republican running for Ohio’s open Senate seat, and Blake Masters, the Republican challenger in Arizona to Senator Mark Kelly. Mr. Vance worked at Mithril Capital, one of Mr. Thiel’s investment funds. Mr. Masters was chief operating officer of Thiel Capital, the billionaire’s family office.Both candidates have espoused a form of nationalism that, in part, blames globalization and leaders’ involvement in international affairs for American stagnation. Mr. Thiel has endorsed that worldview with his money and in speeches, including one at the National Conservatism Conference last year where he called nationalism “a corrective” to the “brain-dead, one-world state” of globalism.The State of the 2022 Midterm ElectionsWith the primaries over, both parties are shifting their focus to the general election on Nov. 8.The Final Stretch: With less than one month until Election Day, Republicans remain favored to take over the House, but momentum in the pitched battle for the Senate has seesawed back and forth.A Surprising Battleground: New York has emerged from a haywire redistricting cycle as perhaps the most consequential congressional battleground in the country. For Democrats, the uncertainty is particularly jarring.Arizona’s Governor’s Race: Democrats are openly expressing their alarm that Katie Hobbs, the party’s nominee for governor in the state, is fumbling a chance to defeat Kari Lake in one of the most closely watched races.Herschel Walker: The Republican Senate nominee in Georgia reportedly paid for an ex-girlfriend’s abortion, but members of his party have learned to tolerate his behavior.“In order for there to be any chance of reversing the wrong direction in which the country has been heading, in Arizona this year it’s Blake or bust,” he wrote in an endorsement on Mr. Masters’s website. Mr. Thiel has supported Mr. Masters’s run by hosting fund-raising dinners and spending $15 million.Mr. Masters was Thiel Capital’s chief operating officer when Mr. Thiel began his Maltese citizenship application. A spokeswoman for Mr. Masters, who left Thiel Capital in March, didn’t respond to questions for comment.Mr. Thiel has also supported the campaign of Blake Masters, who is challenging for one of Arizona’s Senate seats. Mr. Masters previously served as chief operating officer of Thiel Capital, Mr. Thiel’s family office.Adriana Zehbrauskas for The New York TimesMalta, located in the Mediterranean between Europe and North Africa, has been a destination for traders and crusaders for centuries. Outside powers controlled it until 1964; since it gained independence from Britain, it has struggled to build a sustainable economy. The island, which has little industry and few natural resources, joined the European Union in 2004.Malta has found a lucrative economic lever in selling passports. Since 2013, the country’s investor citizenship programs have granted around 2,000 applicants and their families passports, generating millions of euros in revenue.Those offered citizenship on a fast-track route must pay €750,000 into a government fund and maintain a rental or purchased property throughout the 12-month application period and for at least five years after receiving a passport. After that, citizens are no longer required to maintain a residence or live in Malta, which has a population of just over 500,000.Joseph Muscat, Malta’s prime minister who resigned in 2019 amid protests about corruption and the murder of a journalist who was critical of his government, called the passport program “an insurance policy” for wealthy individuals “where they feel there is a great deal of volatility.”“It’s straightforward,” he said. “You pay into a national fund, and the national fund uses that money for infrastructure and for social housing.”The Auberge de Castille, the office of Malta’s prime minister.Darrin Zammit Lupi/ReutersMalta’s fast track for citizenship by investment, or what’s more commonly known as “golden passports,” can take from 12 to 16 months, according to Henley & Partners, a consultancy that developed the Maltese program and helps clients obtain passports around the globe.“We traditionally have had many Americans looking at that, and of those, quite a lot are from the tech sector,” said Christian Kaelin, Henley’s chairman. European Union officials have criticized Malta’s golden passport program. Last month, the European Commission referred Malta to the union’s Court of Justice over the program, noting that citizenship in return for payments “is not compatible with the principle of sincere cooperation” within the bloc. Maltese officials have signaled they will contest any legal challenge.Joseph Mizzi, the head of Community Malta, the agency responsible for selling passports, declined to comment on Mr. Thiel’s application.Mr. Thiel has laid the groundwork for life outside the United States for years. In 2011, he obtained a New Zealand passport after donating 1 million New Zealand dollars to an earthquake relief fund in the country.There is “no other country that aligns more with my view of the future than New Zealand,” he wrote in his passport application, which the local government released in 2017 after reporting from The New Zealand Herald. The news provoked outrage that lawmakers were selling citizenship.Mr. Thiel donated money to Donald J. Trump’s presidential campaign in 2016. Mr. Thiel met with Mr. Trump and Mike Pence at Trump Tower that year.Drew Angerer/Getty ImagesMr. Thiel is going through a similar process in Malta, where he has started laying down business roots. He is an investor in a Malta-based venture fund, Elevat3 Capital, run by Christian Angermayer, a German investor, according to the firm.A spokesman for Mr. Angermayer, who has based his family office and other business ventures in Malta, did not respond to requests for comment.In early 2021, Thiel Capital also became a shareholder in a Malta entity through a byzantine series of developments. The deal involved Coru, a Mexican online financial advice start-up, which has a parent company incorporated in London.Entities controlled by Mr. Thiel and Mr. Danzeisen, his husband, were among Coru’s biggest owners, corporate filings show. The start-up needed additional funding in late 2020, but its investors could not reach an agreement to put more cash in, said two former investors. The company went into administration, the equivalent of bankruptcy.Around that time, Mr. Thiel, Mr. Danzeisen and several other Coru investors established a company in Malta called EUM Holdings Melite Ltd., Maltese records show. That company bought Coru’s shares out of administration for about $100,000, according to British records. The records do not detail EUM’s business activities.Now Coru is owned by EUM. Its shareholders include Mr. Thiel, Mr. Danzeisen, Richard Li — a son of Hong Kong’s richest man, Li Ka-shing — and a group with a former Nicaraguan government official and a scion of the Spanish family that made a fortune selling Lladró porcelain figurines.Mr. Thiel began exploring Maltese citizenship around that time, said people familiar with the process. By late 2021, documents show, he was far along in the application process and retained an agency that fielded questions from the Maltese government about his businesses and political activities.The questions included Mr. Thiel’s role with Palantir Technologies, a data analytics company he founded that works with governments and corporations, and his political activity supporting Mr. Trump.As he applies for Maltese citizenship, Mr. Thiel has cited a two-bedroom apartment in Valletta, Malta’s capital, as a residential address. The apartment is also listed on Airbnb as a short-term vacation rental.Maltese government documents seen by The Times show Mr. Thiel and Mr. Danzeisen listing the apartment in Valletta, the capital, as their address on the island.On a recent visit to the apartment by a Times reporter, a tourist opened the door and said a family member had booked the flat via a short-term rental service. The Times identified a listing for a “2BR Seafront Executive Penthouse” on Airbnb that used Mr. Thiel’s address.Maltese property records show the apartment is owned by Andrew Zammit, a Malta-based lawyer whose firm works on citizenship applications. Mr. Zammit’s wife was named as the host of the Airbnb listing.Mr. Zammit declined to say if he had rented the flat to Mr. Thiel or if the billionaire was applying for a Maltese passport. He also declined to say why the apartment was listed on Airbnb. Within days after The Times inquired about the Airbnb listing, it was made unavailable for future rentals. More

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    Peter Thiel, the Right’s Would-Be Kingmaker

    The wine flowed. Donald Trump Jr. mingled with the guests. And Peter Thiel, the tech billionaire and host of the event, had a message for the well-heeled crowd: It was time to clean house.The fund-raiser at Mr. Thiel’s Miami Beach compound last month was for a conservative candidate challenging Representative Liz Cheney of Wyoming for a spot on the ballot in November’s midterm elections. Ms. Cheney, one of several Republicans who had voted to impeach President Donald J. Trump on charges of inciting the Jan. 6 storming of the U.S. Capitol, was the face of “the traitorous 10,” Mr. Thiel said, according to two people with knowledge of the event, who were not authorized to speak publicly. All of them had to be replaced, he declared, by conservatives loyal to the former president.Mr. Thiel, who became known in 2016 as one of the biggest donors to Mr. Trump’s presidential campaign, has re-emerged as a key financier of the Make America Great Again movement. After sitting out the 2020 presidential race, the venture capitalist this year is backing 16 Senate and House candidates, many of whom have embraced the lie that Mr. Trump won the election.To get these candidates into office, Mr. Thiel has given more than $20.4 million. That essentially puts him and Kenneth Griffin, the chief executive of the hedge fund Citadel, in a tie as the largest individual donors to Republican politics this election cycle, according to the nonpartisan research organization OpenSecrets.What sets Mr. Thiel’s spending apart, though, is its focus on hard-right candidates who traffic in the conspiracy theories espoused by Mr. Trump and who cast themselves as rebels determined to overthrow the Republican establishment and even the broader American political order. These campaigns have raised millions in small-dollar donations, but Mr. Thiel’s wealth could accelerate the shift of views once considered fringe to the mainstream — while making himself a new power broker on the right.“When you have a funder who is actively elevating candidates who are denying the legitimacy of elections, that is a direct assault on the foundation of democracy,” said Lee Drutman, a senior fellow at the left-leaning group New America, who studies campaign finance and hyperpartisanship.The candidates Mr. Thiel has funded offer a window into his ideology. While the investor has been something of a cipher, he is currently driven by a worldview that the establishment and globalization have failed, that current immigration policy pillages the middle class and that the country must dismantle federal institutions.Mr. Thiel has started articulating his thinking publicly, recently headlining at least six conservative and libertarian gatherings where he criticized the Chinese Communist Party and big tech companies and questioned climate science. He has taken issue with what he calls the “extreme dogmatism” within establishment institutions, which he said had sent the country backward.At an October dinner at Stanford University for the Federalist Society, he spoke about the “deranged society” that “a completely deranged government” had created, according to a recording of the event obtained by The New York Times. The United States was on the verge of a momentous correction, he said.“My somewhat apocalyptic, somewhat hopeful thought is that we are finally at a point where things are breaking,” Mr. Thiel said.Mr. Thiel, 54, has not publicly said what he believes about the 2020 election. But in Mr. Trump, he sees a vessel to push through his ideological goals, three people close to the investor said. The two men met recently in New York and at the former president’s Mar-a-Lago club in Palm Beach, Fla. Mr. Thiel also funded an app company run by John McEntee, one of Mr. Trump’s closest aides, two people with knowledge of the deal said.Unlike traditional Republican donors who have focused on their party’s winning control of Congress and the White House, Mr. Thiel has set his sights on reshaping the Republican agenda with his brand of anti-establishment contrarianism, said Stephen K. Bannon, Mr. Trump’s former chief strategist.“I don’t think it’s just about flipping the Senate,” said Mr. Bannon, who has known Mr. Thiel since 2016. “I think Peter wants to change the direction of the country.”How Donald J. Trump Still LoomsGrip on G.O.P.: Mr. Trump remains the most powerful figure in the Republican Party. However, there are signs his control is loosening.Power Struggle: Led by Senator Mitch McConnell, a band of anti-Trump Republicans is maneuvering to thwart the ex-president.Midterms Effect: Mr. Trump has become a party kingmaker, but his involvement in state races worries many Republicans.Post-Presidency Profits: Mr. Trump is melding business with politics, capitalizing for personal gain.Just the Beginning: For many Trump supporters who marched on Jan. 6, the day was not a disgraced insurrection but the start of a movement.Mr. Thiel’s giving is expected to make up just a small fraction of the hundreds of millions of dollars that are likely to flow through campaigns this cycle. But the amounts he is pouring into individual races and the early nature of his primary donations have put him on the radar of Republican hopefuls.In the past, many courted the billionaire Koch brothers or Sheldon Adelson, the late casino magnate. This year, they have clamored for invitations to Mr. Thiel’s Los Angeles and Miami Beach homes, or debated how to at least get on the phone with him, political strategists said.Mr. Thiel personally vets the candidates he gives to, said three Republican strategists, who declined to be named for fear of retaliation. In addition to Harriet Hageman, the challenger to Ms. Cheney, he is backing Joe Kent and Loren Culp, both of whom are running against House Republicans in Washington State who voted to impeach Mr. Trump. He also gave to a political action committee associated with Senator Ted Cruz, Republican of Texas, who is not up for re-election this year. More