ASML invests €1.3 billion in French AI startup Mistral

Dutch technology giant ASML has agreed to invest €1.3 billion in the French startup Mistral, which specializes in artificial intelligence. This creates an alliance between two leading European technology companies at a time when concerns are growing about reliance on American Big Tech groups, reports the Financial Times.

Mistral secured a total of €1.7 billion in its latest funding round, valuing this two-year-old company at nearly €12 billion.

ASML’s CEO, Christophe Fouquet, stated that the investment, which makes his company the largest shareholder in Mistral, reflects the belief that artificial intelligence will be a ‘strategic technology’ and shows ‘long-term confidence’.

This agreement connects a leading European AI startup with one of the most valuable public companies in Europe, whose equipment is used to produce advanced chips necessary for training and applying AI models.

Mistral’s CEO, Arthur Mensch, emphasized that ‘for economic and strategic reasons, it is important that European companies do not rely too much on American technology’.

However, both leaders downplayed the importance of technological sovereignty. Fouquet stressed that ASML did not choose Mistral solely because it is a European partner.

– Sovereignty is an additional benefit. I believe this will help the European ecosystem, but we are doing this because it is good for Mistral and good for ASML – claims Fouquet.

Mensch added that the collaboration will enable the development of more advanced systems.

– We could never bring in much expertise into our AI models if we do not find the right partners – he said.

Mistral, based in Paris and with over 350 employees, is raising additional funds from existing investors such as Andreessen Horowitz, Bpifrance, General Catalyst, Index Ventures, Lightspeed, and Nvidia. Its valuation has nearly doubled since June 2024, but it still lags behind American competitors like OpenAI and Anthropic.

Meanwhile, increasing competition is also coming from China, from companies like DeepSeek and Alibaba, which are developing ‘open source’ AI systems. Nevertheless, Mensch stated that Mistral is taking a different path from its American rivals.

– Our American competitors are more focused on the mass consumer market. For us, the most important thing is to create value through partnerships with truly technological companies – claims Mensch.

It is worth noting that among Mistral’s clients are major players such as Stellantis, which uses AI solutions for supply chain management and the development of in-vehicle assistants, the French shipping giant CMA CGM, as well as several French state institutions.

ASML produces one of the most complex and expensive industrial machines in the world – chip manufacturing equipment that can cost hundreds of millions of euros and contain up to 100,000 components. In the short term, the company will leverage Mistral’s AI expertise to develop new tools and enhance existing systems.

– We started looking for a partner because we thought this is not something we should try to do on our own. Our expertise is in chip manufacturing equipment, and we are not AI experts – explained Fouquet.

Both companies have much larger ambitions, and Mensch also stated that ‘there are many opportunities to connect the semiconductor value chain and the artificial intelligence value chain.’

In recent months, Mistral has signed several high-value contracts thanks to a sales model similar to Palantir’s, where solutions architects work directly with clients on customized AI solutions. According to Mensch, they now have contracts worth over €300 million annually, while the total value of all contracts signed since its founding in June 2023 has reached €1.4 billion. More than half of the business comes from Europe.