Mistral AI’s new model, Mixtral 8x7B, represents a significant advancement in open-source large language models, offering enhanced features such as 32k token support and improved code generation, rivaling or surpassing GPT-3.5 in standard benchmarks. While the model demands more resources than its predecessor, Mistral 7B, increasing costs and hardware requirements, it provides a cost-effective alternative to GPT-3.5 models, particularly through its more affordable mistral-tiny and mistral-small variants. The Mistral AI API, still in beta and requiring an invite, offers compatibility with existing OpenAI client libraries, simplifying migration for developers. Additionally, Mistral AI introduces a new text embedding model, mistral-embed, which, although slightly more expensive than OpenAI's text-embedding-ada-002, integrates seamlessly with the existing client library. The Mixtral 8x7B model and its associated tools offer promising opportunities for developing AI applications and Retrieval Augmented Generation pipelines, despite the need for adjustments in embeddings and potential cost considerations for users transitioning from models like ada v2. Overall, Mixtral 8x7B is poised to have a significant impact on AI development, offering powerful and efficient solutions for a broad spectrum of applications.