Key takeaways Dutch chip equipment giant ASML commits €1.3 billion ($1.5 billion) to become Mistral AI's largest shareholder. Deal values Mistral at €10 billion ($11.7 billion) pre-money, making it Eu...
The investment is part of Mistral's €1.7 billion (~$2 billion) Series C funding round and will value the Paris-based AI company at €10 billion ($11.7 billion) before new money, positioning it as Europe's most valuable AI company. ASML is expected to secure a board seat as part of the deal.
The investment represents a significant strategic move to strengthen European technological sovereignty in the AI sector. ASML's investment in Mistral AI is described as "a move to strengthen European tech sovereignty," according to sources speaking to Reuters.
Often presented as France's and Europe's AI champion, Mistral competes with U.S. giants such as OpenAI and Alphabet's Google. The partnership aims to reduce Europe's dependence on American and Chinese AI models by supporting a homegrown European player in the rapidly growing artificial intelligence market.
The collaboration brings together two European technology leaders with complementary expertise. ASML, the sole supplier of extreme ultraviolet (EUV) lithography machines used by leading chipmakers such as Taiwan Semiconductor Manufacturing Co. and Intel, already deploys AI to optimize its tools.
The company could benefit from Mistral's expertise in data analytics and AI to improve performance and develop new products, according to sources. EUV machines, which cost around $180 million each, are essential for producing the world's most advanced semiconductors.
Founded in 2023, Mistral AI has quickly emerged as one of Europe's most prominent AI companies. The company was founded by Arthur Mensch, a former DeepMind researcher, along with ex-Meta researchers Timothée Lacroix and Guillaume Lample.
Mistral, backed by Nvidia, was valued at more than $6 billion in its Series B round last year. The current funding round represents a significant valuation increase, reflecting the intense investor interest in European AI capabilities.
Bank of America is advising ASML on the investment, according to sources. However, when contacted for comment, ASML declined to comment. Mistral did not respond to Reuters' request for comment. Bank of America also declined to comment when approached by Reuters.
The deal comes as European governments and companies increasingly seek to develop independent AI capabilities to compete with American technology giants and reduce strategic dependencies on foreign AI systems.
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