Mistral AI's Meteoric Rise: Europe's AI Powerhouse

French AI startup Mistral AI has secured €1.7 billion in funding, spearheaded by Dutch chip equipment maker ASML, establishing Mistral as Europe's top AI company. The partnership aims to elevate Europe's AI competitiveness against U.S. giants like OpenAI. ASML becomes Mistral's main shareholder, furthering Franco-Dutch tech synergies.

French artificial intelligence startup Mistral AI has successfully secured €1.7 billion ($2 billion) in its latest funding round, prominently led by Dutch chip equipment maker ASML. Both companies confirmed the funding details on Tuesday, following a previous report by Reuters on Sunday.

In this series C funding round, ASML's investment of €1.3 billion establishes it as Mistral AI's principal shareholder, holding an approximately 11% stake. Mistral's valuation has soared to €11.7 billion, making it the most valuable AI company in Europe and strengthening its position against U.S. tech giants such as OpenAI and Google.

ASML's engagement with Mistral signifies a strategic shift towards deeper tech cooperation within Europe, complemented by ASML's recent ties with France. This includes the appointment of former French Finance Minister Bruno Le Maire as an adviser and leadership under French CEO Christophe Fouquet. Other investors in the round include industry heavyweights like DST Global, Andreessen Horowitz, and Nvidia.

(With inputs from agencies.)