LFM3-1.7B vs Mistral Medium 3.5
Liquid AI · US | Mistral AI · France · Updated June 2026
Quick verdict
Pick LFM3-1.7B for very small open-weight text model - about 1.73b parameters with a 256k-token context for on-device use or liquid says it can power agentic applications that used to need 9b parameters. Pick Mistral Medium 3.5 for strong intelligence-for-size — artificial analysis intelligence index 30, near the top of its price tier or 128b dense open-weight model — self-hostable. On a tight budget at scale, LFM3-1.7B is the value pick.
LFM3-1.7B (Liquid AI, US) and Mistral Medium 3.5 (Mistral AI, France) line up two different AI ecosystems against each other — a comparison that is as much about cost philosophy and openness as raw capability. LFM3-1.7B is liquid AI's October 27, 2026 on-device text model - about 1.73B parameters and 256K context, with open weights under a license capped at $10M annual revenue. Mistral Medium 3.5 is mistral's efficient 128B open-weight model — a single dense model unifying reasoning and coding that punches above its size on independent tests (AA Index 30). Their biggest split is price, and the breakdown below shows exactly how that plays out for your workload.
Key differences at a glance
- ▸Context window: both advertise 256K tokens (~384 pages). Tie on paper — test on your own long inputs, since usable recall varies by model.
- ▸Recency: LFM3-1.7B is the newer model by about 6 months (released October 27, 2026), usually meaning fresher training data and capabilities.
- ▸Ecosystem: this is a US-vs-France matchup — they differ in pricing philosophy, data-residency options, and tooling ecosystems, not only benchmarks.
Side-by-side specs
| Spec | LFM3-1.7B | Mistral Medium 3.5 |
|---|---|---|
| Provider | Liquid AI (US) | Mistral AI (France) |
| Released | October 27, 2026 | April 28, 2026 |
| Context window | 256K tokens (~384 pages) | 256K (~384 pages) |
| Price (in/out) | Open weight (self-host / free) | $1.5/$7.5 per 1M tokens |
| Open weight? | Yes — self-hostable | Yes — self-hostable |
| Modalities | text | text, image, code |
| SWE-Bench Verified | Not published | Not published |
| MRCR v2 @ 1M | Not published | Not published |
Who wins what
Very small open-weight text model - about 1.73B parameters with a 256K-token context for on-device use
LFM3-1.7B
Liquid AI's October 27, 2026 on-device text model - about 1.73B parameters and 256K context, with open weights under a license capped at $10M annual revenue — and it is the newer of the two.
Liquid says it can power agentic applications that used to need 9B parameters
LFM3-1.7B
LFM3-1.7B lists liquid says it can power agentic applications that used to need 9B parameters among its strengths; Mistral Medium 3.5 does not.
Part of a six-model LFM3 family covering text, vision, audio, omni and decision tasks
LFM3-1.7B
Mistral Medium 3.5 is comparatively weak here — no native video or audio
Strong intelligence-for-size — Artificial Analysis Intelligence Index 30, near the top of its price tier
Mistral Medium 3.5
LFM3-1.7B is comparatively weak here — no published per-token API price found
128B dense open-weight model — self-hostable
Mistral Medium 3.5
Mistral Medium 3.5 lists 128B dense open-weight model — self-hostable among its strengths; LFM3-1.7B does not.
Unifies reasoning and coding into one model with an adjustable reasoning effort
Mistral Medium 3.5
LFM3-1.7B is comparatively weak here — liquid says it is not recommended for agentic coding or complex multi-step reasoning because of its size
Lowest cost at scale
LFM3-1.7B
Its weights are open, so at volume you pay for your own hardware instead of Mistral Medium 3.5's $1.5/$7.5 per 1M tokens.
Which should you pick?
A cost-sensitive startup shipping high volume
→ LFM3-1.7B
At Open weight (self-host / free) it undercuts Mistral Medium 3.5, and on millions of tokens that margin decides the monthly bill.
Anyone whose priority is very small open-weight text model - about 1.73b parameters with a 256k-token context for on-device use
→ LFM3-1.7B
It is specifically built for that.
Anyone whose priority is strong intelligence-for-size — artificial analysis intelligence index 30, near the top of its price tier
→ Mistral Medium 3.5
That is its strongest area.
An enterprise with regional data-residency rules
→ LFM3-1.7B or Mistral Medium 3.5
Origin (US vs France) affects where data is processed and which compliance regime applies — check the provider's terms for your region.
LFM3-1.7B: where it fits
Liquid AI's October 27, 2026 on-device text model - about 1.73B parameters and 256K context, with open weights under a license capped at $10M annual revenue. Released October 27, 2026 by Liquid AI, it is built for very small open-weight text model - about 1.73B parameters with a 256K-token context for on-device use, liquid says it can power agentic applications that used to need 9B parameters, part of a six-model LFM3 family covering text, vision, audio, omni and decision tasks, and supports 16 languages.
Its trade-offs are real: lFM Open License v1.0 covers commercial use only below $10M annual revenue; larger firms need a paid license, liquid says it is not recommended for agentic coding or complex multi-step reasoning because of its size, text-only; vision and audio need other LFM3 checkpoints, and no published per-token API price found. As an open-weight model, its running cost is your own hardware rather than a per-token fee.
Mistral Medium 3.5: where it fits
Mistral's efficient 128B open-weight model — a single dense model unifying reasoning and coding that punches above its size on independent tests (AA Index 30). Released April 28, 2026 by Mistral AI, it is built for strong intelligence-for-size — Artificial Analysis Intelligence Index 30, near the top of its price tier, 128B dense open-weight model — self-hostable, unifies reasoning and coding into one model with an adjustable reasoning effort, and 256K context with text and image input.
Its trade-offs: below the absolute frontier — a value/efficiency pick, not a flagship-beater, output pricing ($7.50/M) is higher than the cheapest Chinese rivals, license framing ('open' vs enterprise) varies across sources — confirm terms for commercial use, and no native video or audio. At $1.5 in / $7.5 out per million tokens, it sits in the mid price band.
The bottom line for this matchup
This is less "which is smarter" and more "which ecosystem fits." LFM3-1.7B (US) and Mistral Medium 3.5 (France) differ on pricing philosophy, data-residency, and tooling as much as on raw scores. LFM3-1.7B is the cheaper option, which matters at volume. The pragmatic move is to run one real task through both and judge the outputs against your own constraints — including where your data is allowed to be processed.
Want both LFM3-1.7B and Mistral Medium 3.5 without two subscriptions? LumiChats gives you these plus 40+ models under one ₹69/day pass (about $1/day) — draft with one, cross-check with the other.
See pricingFrequently asked questions
Is LFM3-1.7B or Mistral Medium 3.5 better for coding?
Public SWE-Bench figures are not available for either model, so the honest test is your own repository — run an identical real bug through both. By design, LFM3-1.7B leans toward very small open-weight text model - about 1.73b parameters with a 256k-token context for on-device use while Mistral Medium 3.5 leans toward strong intelligence-for-size — artificial analysis intelligence index 30, near the top of its price tier, and that positioning usually predicts which feels better on your codebase.
Which is cheaper, LFM3-1.7B or Mistral Medium 3.5?
LFM3-1.7B is cheaper — Open weight (self-host / free) vs $1.5/$7.5 per 1M tokens.
Which has the bigger context window?
Both advertise 256K tokens (~384 pages). Remember advertised ≠ usable: recall typically degrades before the ceiling.
Can I use both LFM3-1.7B and Mistral Medium 3.5 together?
Yes — a multi-model platform like LumiChats gives you LFM3-1.7B, Mistral Medium 3.5 and 40+ others under one ₹69/day pass (about $1/day), so you can draft with one and cross-check with the other instead of buying two subscriptions.
Which is newer, LFM3-1.7B or Mistral Medium 3.5?
LFM3-1.7B — released October 27, 2026, about 6 months after Mistral Medium 3.5.
Related comparisons
Specifications and benchmarks reflect publicly reported figures as of June 2026 and may change as providers release updates. Always verify on your own workload.