TLDRs;
- French AI startup achieves rapid growth, attracting global investors including ASML and Nvidia.
- Semiconductor giant secures board seat to align AI with chip industry needs.
- Mistral’s open-source approach strengthens Europe’s push for technological sovereignty against U.S. and Chinese rivals.
- Singapore’s military teams with Mistral to deploy secure generative AI models for mission planning.
In just under two years since its founding in June 2023, Paris-based Mistral AI has risen from a seed-stage startup to one of the most valuable AI companies in Europe.
The firm has announced a $2 billion (€1.7 billion) Series C funding round, led by ASML Holding NV, Europe’s semiconductor equipment giant. The raise gives Mistral AI a post-money valuation of $13.8 billion (€11.7 billion), marking one of the fastest valuation climbs in the global AI industry.
Other prominent investors included DST Global, Andreessen Horowitz, Bpifrance, General Catalyst, Index Ventures, Lightspeed, and Nvidia. The fresh capital will fund research and development of AI solutions for industrial and engineering sectors, areas where demand for advanced automation and intelligence is surging.
European Push for Tech Sovereignty
The deal carries strategic weight beyond just funding. For ASML, which produces the extreme ultraviolet (EUV) lithography machines essential for advanced chipmaking, this marks its largest-ever single AI investment, worth €1.3 billion.
ASML CEO Christophe Fouquet emphasized that the partnership aims to integrate AI into semiconductor tools, driving innovation in chip design and manufacturing.
The move also reflects Europe’s broader ambition to reduce reliance on U.S. and Chinese AI technologies. Mistral’s emphasis on open-source AI models offers an alternative to the closed, proprietary approaches of American rivals such as OpenAI and Google. Analysts see the deal as part of a wider effort to establish European technological sovereignty by aligning AI development with local industry needs.
Global Presence, Strong Customer Base
Despite its youth, Mistral AI has already achieved global reach. The company operates from offices in Paris, London, Luxembourg, Palo Alto, New York City, and Singapore, with a workforce of over 350 employees.
It serves more than 100 customers worldwide and has built a portfolio of over 15 AI models, ranging from large language models to specialized infrastructure solutions.
The startup’s meteoric rise from a €240 million seed valuation to €11.7 billion in less than two years highlights investor confidence in its execution and strategy. This growth has been driven not only by financial backing but also by strategic partnerships with major institutions across Europe, Asia, and the U.S.
Expanding Into Strategic Partnerships
Mistral’s momentum has extended into the defense sector. In March 2025, the company partnered with Singapore’s Ministry of Defence, alongside the Defence Science and Technology Agency (DSTA) and DSO National Laboratories, to build generative AI models tailored to military use.
The initiative focuses on enhancing mission planning, decision-making, and secure deployment of AI models for the Singapore Armed Forces.
The collaboration underlines Mistral’s growing ability to bridge civilian and defense applications, while ensuring compliance with stringent security requirements. It also reflects the startup’s commitment to working with government agencies to tailor AI for real-world operational environments.
