French artificial intelligence startup Mistral AI is in early stage talks to raise approximately €3 billion (around $3.5 billion), according to people familiar with the matter. The proposed funding round could value Europe’s leading generative AI contender at roughly €20 billion ($23.1 billion).
If finalized, the deal would nearly double the company’s valuation from its previous funding round. That round, a €1.7 billion Series C led by Dutch semiconductor giant ASML Holding NV, valued Mistral at €11.7 billion. Insiders caution that the current discussions are fluid and terms could change. Representatives for both Mistral and ASML declined to comment.
Founded in April 2023 by former researchers from Google DeepMind and Meta, Mistral has positioned itself as a “sovereign” alternative to Silicon Valley giants like OpenAI and Anthropic. To comply with strict European data privacy laws, Mistral is building its own computing infrastructure, including data centers near Paris and a €1.2 billion facility in Sweden.
Chief Executive Officer Arthur Mensch has strongly advocated for keeping AI capabilities within continental boundaries, previously noting, “We must have control over this technology.”
The startup has already secured enterprise partnerships with European industrial titans like Airbus SE and BMW AG. To reduce its reliance on Nvidia hardware, Mensch also revealed that Mistral is exploring in-house chip design.
Despite its rapid growth, Mistral faces a steep climb to match its American rivals. OpenAI and Anthropic hold valuations nearing $852 billion and $965 billion, respectively.
While Mistral’s open weight models are highly regarded by developers, its commercial adoption lags behind U.S. and Chinese competitors. Mistral’s annual recurring revenue recently crossed $400 million, but the company has set an aggressive target to surpass $1 billion by the end of the year. Investors are now weighing whether this massive capital injection will give Mistral the computing power it needs to permanently compete on the global stage.
