Chip giant ASML invests €1.3bn in French AI champion Mistral

ASML has agreed to invest €1.3 billion in France’s Mistral AI as part of a funding round worth €1.7bn, the two firms said on Tuesday, confirming an earlier Reuters report.

The funding values the French start-up at about €11.7bn, more than double the €5.8-bn valuation it achieved last year.

It also makes Mistral, a European rival to Sam Altman’s OpenAI, one of Europe’s most valuable private companies, despite less than three years in business.

For comparison, OpenAI is valued at around $500bn (€425bn), meaning Europe is still playing catch-up to US heavyweights.

“The collaboration between Mistral AI and ASML aims to generate clear benefits for ASML customers through innovative products and solutions enabled by AI, and will offer potential for joint research to address future opportunities,” said ASML president and CEO Christophe Fouquet.

Thanks to the fresh investment, the Dutch firm will become the largest shareholder in Mistral, with 11% ownership.

Other participants in Mistral’s funding round include prior investors like Nvidia, Bpifrance, Andreessen Horowitz, General Catalyst and DST Global.

Roger Dassen, ASML’s chief financial officer, will also join Mistral’s board.

A European champion?

ASML is one of Europe’s most valuable public firms and makes equipment required to manufacture semiconductor chips, which are in turn necessary to run AI models. At a time of heightened geopolitical tensions, the deal between the European companies reduces dependence on overseas players, pleasing those calling for the localisation of supply chains.

The partnership will also allow ASML to integrate Mistral AI technology into its manufacturing processes. It is an unusual move for the chip equipment firm, which rarely invests in start-ups and has never previously backed an AI firm.

“We are proud to engage in this long-term partnership with ASML, combining our frontier AI expertise with ASML’s unmatched industrial leadership and most sophisticated engineering capabilities,” said Mistral AI co-founder and CEO Arthur Mensch. 

He added: “We believe this partnership will strengthen Mistral AI’s proposition, position, and value in the AI market.”