Mistral AI Raises €1.7 Billion from ASML to Advance AI Development

French AI startup Mistral has secured a landmark $1.5 billion investment from Dutch semiconductor giant ASML, marking a major milestone in Europe’s push for technological independence in artificial intelligence. The Series C funding round, totaling 1.7 billion euros (about $1.5 billion), values Mistral at approximately 11.7 billion euros post-money, nearly doubling its previous valuation and making it Europe’s most valuable AI startup. ASML, which holds a market capitalization of $308 billion, took an 11% stake in Mistral, becoming its largest shareholder. The investment underscores a strategic alliance between two leaders in the global tech supply chain. ASML, the world’s leading supplier of semiconductor manufacturing equipment, will leverage Mistral’s AI technology for internal R&D and supply chain optimization. ASML CEO Christophe Fouquet emphasized that the partnership aims to deliver innovative, AI-powered solutions for ASML’s customers and to explore joint research into future technological opportunities. Mistral CEO Arthur Mensch hailed the deal as a pivotal step toward advancing the full semiconductor and AI value chain. He stated that Mistral’s AI models will help ASML and its partners address complex engineering challenges, reinforcing the concept of “AI sovereignty”—the idea that nations should develop and control their own AI infrastructure, including hardware and data, to reduce reliance on foreign technology. The funding round also includes participation from existing investors such as DST Global, Andreessen Horowitz, Bpifrance, General Catalyst, Index Ventures, Lightspeed, and Nvidia. Nvidia’s involvement continues a growing partnership between the two companies. In June, Nvidia and Mistral announced a collaboration to power Mistral’s AI infrastructure with Nvidia’s chips, with CEO Jensen Huang and Mensch jointly promoting the vision of AI sovereignty during a public event. Mistral, founded in 2023 by former Meta and Google AI researchers, has gained recognition for its open-weight large language models—models whose internal parameters are publicly available for transparency and customization, though the full source code remains proprietary. This approach enables broader access and innovation while maintaining control over core technology. The startup has focused on developing high-performance, decentralized AI solutions tailored for industrial and enterprise use, particularly in sectors like manufacturing, energy, and logistics. While Mistral’s valuation remains far below that of OpenAI, which has raised nearly $60 billion, the company is positioning itself as a key player in Europe’s AI ambitions. Its recent funding reflects growing confidence in Europe’s ability to build competitive AI ecosystems without depending on U.S.-based tech giants. The investment also signals a shift in ASML’s strategy. Known for its cautious approach to venture investing, ASML’s last direct startup investment was in 2023. This move marks a rare public commitment to a deep-tech startup, highlighting the strategic importance of AI in the future of chip manufacturing and beyond. As AI continues to reshape industries, the Mistral-ASML partnership exemplifies how collaboration across hardware and software can accelerate innovation. With this funding, Mistral plans to expand its research, scale its infrastructure, and deliver customized AI solutions that tackle some of the most complex challenges in strategic industries. The deal not only strengthens Mistral’s position but also strengthens Europe’s broader goal of achieving technological self-reliance in the age of artificial intelligence.