Mistral cements AI lead in Europe with cash infusion

France’s Mistral on Tuesday cemented its position as Europe’s top AI hope against far larger US and Chinese competitors after a record fundraising round and a tie-up with chipmaking equipment heavyweight ASML.

The 1.7 billion euro ($2 billion) cash infusion values Mistral at 11.7 billion euros, double its heft last year but a fraction of the $183 billion price tag placed on US firm Anthropic this month.

ASML, a key producer of the machines that churn out the chips powering artificial intelligence models, was the lead investor, with a 1.3-billion-euro infusion that gives the Dutch company an 11% stake in Mistral.

Mistral has been touted as a European AI champion as technological sovereignty concerns fester between the European Union and the United States under the second administration of President Donald Trump.

The deal “aims to generate clear benefits for ASML customers through innovative products and solutions enabled by AI,” the Dutch firm’s boss Christophe Fouquet said in a statement, pointing to “potential for joint research” in future.

Mistral chief executive Arthur Mensch said its AI could help ASML “solve current and future engineering challenges”, leading to benefits for both semiconductor hardware and the AI software that runs on it.

ASML said it would gain a seat on Mistral’s strategic committee, giving the Dutch firm “an advisory role in Mistral AI’s future strategy and technology decisions”.

ASML’s Chief Financial Officer Roger Dassen will assume this role.

‘Real alternative’

Mistral’s fundraising comes after months of rumors that it could be the target of a takeover bid by Apple, which has lagged other tech giants in developing its own AI.

But the latest funding round “reaffirms the company’s independence”, Mistral said in its statement.

Tying Mistral more closely into the wider European high-tech sector through ASML was necessary to compete, the founder of AI and data firm Ekimetrics Jean-Baptiste Bouzige told AFP.

“There’s no way to be in the fight in this sector while remaining strictly French,” he said, adding that “Europe is the appropriate scale” for a company like Mistral.

Other players in the latest investment rounded included chip giant Nvidia, venture capital funds Index Ventures, Andreessen Horowitz and French public investment bank Bpifrance.

Mensch co-founded Mistral in 2023 after working for Google’s DeepMind AI division, while fellow founders Guillaume Lample and Timothee Lacroix previously worked at Meta’s AI lab.

The chief executive told the Wall Street Journal in June that Mistral was on course to generate $100 million in annual revenue.

Bet on ‘open source’

Mistral’s key products include Le Chat, a large language model (LLM) chatbot competing with the likes of ChatGPT from the sector’s American heavyweight OpenAI.

But OpenAI, headed by Sam Altman, operates on a different scale: It is reportedly in talks to allow employees to sell shares at a $500 billion valuation.

As well as text, Mistral offers generative AI models capable of turning out images and computer code.

The company has opened offices in Paris, London, Luxembourg, New York, California’s Palo Alto and Singapore and expanded to over 350 staff.

One factor setting it apart has been its practice from the beginning of releasing “open source” versions of its AI models, allowing other developers to run and modify them for their own purposes.

This year Mistral has announced a slew of partnerships, including with American chip giant Nvidia to create a cloud computing platform, or with Saudi investment fund MGX to build an AI campus outside Paris.

Mistral has also signed a deal with Agence France-Presse (AFP) for Le Chat to draw on the news agency’s decades of archives in six languages to generate responses to users’ queries about news and current events.

© 2025 AFP