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ASML’s Strategic Bet on European AI
ASML, the Dutch leader in chipmaking equipment, is set to become the largest shareholder in French artificial intelligence startup Mistral AI. According to people familiar with the matter, the company will commit 1.3 billion euros ($1.5 billion) to Mistral’s latest fundraising round, which totals 1.7 billion euros (nearly $2 billion).
The move underscores growing efforts to secure European leadership in both semiconductors and artificial intelligence. As part of the deal, ASML is expected to secure a board seat at Mistral, strengthening the link between two of Europe’s most prominent technology players.
Mistral’s Valuation Surges
The funding round will value Mistral AI at 10 billion euros ($11.7 billion) before the new investment, making it the most valuable AI company in Europe to date. The French startup, founded in 2023, has already been positioned as Europe’s response to U.S. players such as OpenAI and Google.
Mistral was previously valued at more than $6 billion after its Series B round last year. Reports in recent weeks suggested that the company was in talks with investors for valuations as high as $14 billion. Regardless of the final figure, the latest deal confirms its rapid ascent as a key player in the global AI race.
Boosting European Tech Sovereignty
A stake in Mistral would represent more than just a financial investment. By tying together Europe’s leader in advanced chipmaking with one of its most ambitious AI ventures, the deal could help reduce reliance on U.S. and Chinese technology.
Analysts note that Mistral’s software and data expertise could complement ASML’s own use of AI in improving lithography tools. Integrating Mistral’s capabilities could support ASML in developing more efficient equipment and expanding its product portfolio.
For Mistral, the cash injection provides the resources to compete more directly with well-funded American rivals, while also reinforcing Europe’s drive for strategic autonomy in critical technologies.
A Key Supplier in Global Chipmaking
ASML holds a unique position in the semiconductor supply chain. It is the world’s sole supplier of extreme ultraviolet (EUV) lithography machines, a technology essential for producing the most advanced chips. Each EUV system costs around $180 million and is used by manufacturers such as Taiwan Semiconductor Manufacturing Co. and Intel.
The company’s tools form the backbone of global chip production, making its involvement in AI particularly significant. By investing in Mistral, ASML may strengthen its own technological base while contributing to Europe’s long-term competitiveness in semiconductors and AI.
Banking and Advisory Roles
The negotiations have been handled discreetly, with Bank of America advising ASML on the transaction, according to people familiar with the talks. Neither ASML nor Mistral provided public comments, and Bank of America declined to confirm its role.
Founders and Backers
Mistral was established in Paris in 2023 by Arthur Mensch, formerly of Google’s DeepMind, alongside ex-Meta researchers Timothée Lacroix and Guillaume Lample. Within two years, the startup has drawn significant backing, including support from Nvidia, and has rapidly expanded its valuation.
The company’s trajectory reflects investor appetite for alternatives to U.S.-dominated AI firms. For policymakers in Europe, Mistral’s rise offers a chance to bolster regional innovation and keep strategic technologies closer to home.
Looking Ahead
While exact details of the fundraising may evolve, ASML’s investment marks a pivotal moment in Europe’s push to establish itself as a global technology hub. By uniting chipmaking infrastructure with advanced AI development, the partnership signals a step toward building a more self-sufficient ecosystem.
For ASML, the deal offers access to cutting-edge AI capabilities that could enhance its tools and maintain its leadership in semiconductor manufacturing. For Mistral, it provides both capital and validation from one of Europe’s most influential tech companies.
The outcome may help shape how Europe competes in the next phase of the global technology race — one where chips and AI are inseparable drivers of growth.
