AI Search Gone Wrong
Mistral’s $14B climb, AI search fumbles with 404s, Instagram growth that works, and a side hustle turned $250M brand.
Good morning, builders 👋
AI is getting greener, search is glitching harder, Instagram’s still a puzzle, and one side hustle just hit $250M in revenue.
This week’s mix: Europe’s Mistral takes on OpenAI, AI assistants send you to 404s more than Google, Instagram growth that actually works, and a fashion founder who turned $800 into an empire.
Let’s dive in. 🚀
AI
Mistral AI: Europe’s Answer to OpenAI?
French startup Mistral AI is raising a fresh funding round that could double its valuation to a jaw-dropping $14 billion.
Best known for its chatbot Le Chat (which Macron himself endorsed), Mistral is positioning itself as Europe’s top AI contender with a growing suite of models—from coding assistant Devstral to multimodal Pixtral Large and reasoning model Magistral.
The company isn’t just building cool models—it’s also locking down major partnerships (Microsoft, AFP, Stellantis, and even France’s army), while quietly racking up €1B in funding since 2023. Its open-source stance sets it apart from rivals like OpenAI, though not all of its models are free for commercial use.
Still, with enterprise integrations, B2B APIs, and a paid tier for Le Chat, Mistral is chasing revenue that can match its hype. As for an exit? IPO, not acquisition—at least according to CEO Arthur Mensch.
Content
AI Search vs. Google: Who Sends You to 404 Pages More?
Tech gotcha alert: A recent Ahrefs study reveals that AI-powered search assistants are sending users to 404 error pages nearly three times more often than Google Search does.
That’s a reality check for anyone using AI as their go-to search buddy.
Here’s the breakdown:
*Based on actual clicks per Test 1: Web Analytics data.
When looking at all URLs these assistants cite (not just clicked ones)—via Test 2: Brand Radar—the 404 rate for ChatGPT jumps to a whopping 2.38%, versus Google’s 0.84% baseline.
Why Are AI Bots So Bad at Links?
Two big reasons:
Outdated info – AI sometimes calls out URLs that once existed but have since vanished.
Invented URLs – Even weirder: they sometimes make up URLs that sound plausible but never existed in the first place.
TL;DR: What This Means for You
AI searches are glitchy when linking—expect more 404 surprises than with traditional Google.
Not all AI search is equally prone to errors—ChatGPT leads in link hallucinations, while Mistral performs best (but sends less traffic overall).
Marketers, beware—if AI referrals are part of your traffic mix, 404s could be silently tanking engagement metrics.
Marketing
Instagram Growth: 7 Solid Moves That Actually Work (2025 Edition)
Growing on Instagram in 2025 isn’t about hacks or fake followers—it’s about smart, consistent moves. StanzaGo lays out 7 strategies worth your time:
Nail your profile SEO (keywords, hashtags, alt text).
Post relatable content that resonates with your niche.
Ride trends + smart timing to boost reach.
Keep your aesthetic consistent—visuals still matter.
Lean on Reels (they get 22% more engagement).
Go Live for Q&As and behind-the-scenes.
Actually talk with your followers—comments count.
Skip the shortcuts (buying followers, spamming posts, or ignoring your niche) if you want lasting growth.
Entrepreneurship
12th Tribe: How a $800 Side Hustle Became a $35M Annual Machine
What started as a quirky vintage-styling side gig quickly turned into 12th Tribe, a DTC fashion powerhouse that’s pulled in $250 million in lifetime revenue and now does about $35 million a year—all with zero VC funding. The founder began with just $800 and festival styling in L.A., shipping vintage shorts that went viral.
Fast forward, the brand boasts 600,000 followers, international orders, and flagship stores in SoHo and Venice. She tackled early missteps—like a fulfillment meltdown—by over-communicating with customers and overhauling logistics.
Her advice?
You don’t need funding or followers—just conviction, community, and show-up grit.
💡 Quick fact: By 2030, AI is projected to add $15.7 trillion to the global economy—making it the biggest commercial opportunity in today’s fast-changing world.