Sources familiar with the matter reveal that ASML Holding NV, a key supplier of advanced chip manufacturing equipment, will become the largest shareholder in French artificial intelligence startup Mistral AI, a move aimed at strengthening European technological sovereignty.
According to anonymous sources who requested confidentiality due to the undisclosed nature of the negotiations, the Dutch company ASML Holding NV will invest €1.3 billion ($1.5 billion) out of Mistral's €1.7 billion ($2 billion) funding round and is expected to secure a board seat at Mistral.
Sources indicate that in this latest Series C funding round, Mistral's pre-funding valuation stands at €10 billion ($11.7 billion), and following this round, the company will become Europe's highest-valued artificial intelligence enterprise.
ASML Holding NV declined to comment on the matter. Mistral did not respond to requests for comment.
Mistral is often regarded as a leading artificial intelligence company in France and Europe, competing with American tech giants such as OpenAI and Google, which is owned by Alphabet.
Sources suggest that holding shares in Mistral will establish close ties between two leading European tech companies, and the funding provided by ASML Holding NV could help reduce Europe's dependence on American artificial intelligence models.
ASML Holding NV produces lithography equipment that is crucial for cutting-edge chip manufacturing, and the company also utilizes artificial intelligence to improve the efficiency of its equipment. By applying Mistral's data analysis and AI capabilities, ASML Holding NV could potentially benefit by enhancing its equipment performance and developing additional products.
ASML Holding NV is the exclusive supplier of extreme ultraviolet lithography equipment, with customers including chip manufacturers like TSMC and Intel. EUV lithography systems cost approximately $180 million each and are essential equipment for manufacturing the most advanced chips.
Mistral previously received investment from NVIDIA and achieved a valuation exceeding $6 billion after its Series B funding round last year. Earlier this month, reports indicated that Mistral was in discussions with MGX and other investors to raise $1 billion at a $10 billion valuation.
Last week, reports suggested that Mistral's current funding round was expected to value the company at $14 billion.
Founded in 2023, Mistral's founders include former DeepMind researcher Arthur Mensch, along with former Meta researchers Timothée Lacroix and Guillaume Lample.
Sources indicate that Bank of America reportedly provided advisory services for ASML Holding NV's investment in Mistral. Bank of America declined to comment on the matter.