NVDA Stock Alert: Nvidia introduces a new AI model with Mistral

NVIDIA (NASDAQ:NVDA) shares are up significantly today after the chipmaker announced a new language model with the French startup Mistral-AI. In fact, the two companies presented Mistral-NeMo, a language model for integrating artificial intelligence (AI) directly to company computers.

“We’re launching a model that we co-trained with Mistral. It’s a 12 billion parameter model, and we’re launching it on Apache 2.0,” said Bryan Catanzaro, vice president of applied deep learning research at Nvidia. “We’re really excited about the accuracy of this model on many tasks.”

Some see the surprising collaboration as a sign of change in the AI ​​industry. The fact that Nvidia, one of the most valuable companies in the world and perhaps the biggest player in the AI ​​race, is joining forces with Mistral, a relatively small startup in the European AI world, could create more equality in access to advanced AI technology.

According to Catanzaro, the real advantage of the new language model is its small size.

“The smaller models are just much more accessible,” he said. “They’re easier to run, the business model can be different because people can run them on their own systems at home. In fact, this model can run on RTX GPUs, which many people already have.”

Mistral-Nemo’s 128,000-token context window is particularly noteworthy. This allows the model to understand much longer blocks of text than other language models, making it increasingly effective in real-world scenarios.

“We believe that long-context capabilities can be important for many applications,” said Catanzaro. “If you can avoid the fine-tuning, it’s much easier to deploy.”

New language model causes NVDA shares to rise after brief slump

It seems that Nvidia investors are encouraged by today’s news. In fact, NVDA shares are up more than 2.5% today after losing more than 6% of their value on Wednesday.

In fact, Nvidia and most other chipmakers on Wall Street experienced a brief sell-off on Wednesday after Bloomberg reported that the Biden administration is considering imposing stricter controls on foreign-made products that use even a little American technology. This would, of course, affect virtually the entire semiconductor sector, much of which is exported to China.

Former President Trump also contributed to the dismantling by suggesting that Taiwan should “pay” the U.S. for protection from China and stating that Taiwan had taken over “approximately 100 percent” of the U.S. semiconductor industry.

At the time of publication, Shrey Dua did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s disclosure policies.

At the time of publication, the responsible editor held a LONG position in NVDA.