ASML, the Dutch chip equipment giant, has made a significant investment in the European AI landscape. The company injected €1.3 billion ($1.5 billion) into Mistral AI, a French artificial intelligence startup, securing a leading 11% stake and making Mistral its largest shareholder. This substantial investment was part of a larger €1.7 billion ($2 billion) funding round for Mistral, propelling the company to an impressive €11.7 billion valuation—the highest for any AI company in Europe. This strategic move underscores Europe’s growing ambition to become a major player in the global AI arena.
Mistral AI, founded just last year by former researchers from Google DeepMind and Meta, is rapidly establishing itself as a prominent European alternative to US AI behemoths like OpenAI, Meta, and Google. The partnership with ASML provides Mistral with not only substantial capital but also access to ASML’s extensive expertise in semiconductor technology. This collaboration will focus on integrating Mistral’s AI models into ASML’s semiconductor equipment, potentially leading to innovative advancements in the chip manufacturing process.
The strategic alliance between ASML and Mistral is further strengthened by ASML’s strong ties within the French industrial and political landscape. This includes the recent appointment of former French Finance Minister Bruno Le Maire as a special advisor, as well as the leadership of ASML’s CEO, Christophe Fouquet, a French national. Analyst Jan Frederik Slijkerman of ING highlights the industrial rationale behind the partnership, suggesting that it’s a more efficient strategy for ASML to develop AI-based products through collaboration than to do so in-house.
While Mistral’s valuation is significantly lower than that of its US counterparts (OpenAI is reportedly eyeing a $500 billion valuation), the investment signifies a major step forward for European AI development. It showcases a growing commitment to fostering innovation within Europe. It demonstrates the potential for European companies to compete on a global scale in the rapidly evolving field of artificial intelligence. The partnership promises to be mutually beneficial, driving technological innovation and bolstering Europe’s position in the AI race.
