ASML's $1.5 Billion Investment Secures Top Shareholder Status in Mistral AI, Valuing Startup at $14 Billion

Amsterdam, Netherlands – ASML, the Dutch semiconductor equipment giant, is set to become the largest shareholder in French artificial intelligence startup Mistral AI, following a significant €1.3 billion ($1.5 billion) investment. This strategic move is part of Mistral's latest funding round, totaling approximately €1.7 billion ($2 billion), which values the burgeoning AI company at $14 billion. The deal underscores a concerted effort to bolster European technological sovereignty in the critical fields of semiconductors and artificial intelligence.

ASML, recognized as the world's sole supplier of extreme ultraviolet (EUV) lithography machines essential for advanced chip production, aims to leverage this investment to integrate Mistral's cutting-edge AI capabilities. As stated in the tweet, "> Semiconductor machine maker ASML (Netherlands) is Europe’s 2nd largest company at $307B (behind SAP at $313B)." This investment is expected to enhance ASML's existing tools and contribute to the development of new products, thereby improving efficiency and performance across its operations.

Mistral AI, founded in 2023 by former researchers from Google's DeepMind and Meta, has rapidly emerged as a leading European contender in the AI landscape. The company specializes in open-source generative AI models and is actively building its own foundation model, along with a chatbot named "Le Chat." According to the tweet, "> France’s Mistral is raising $2B at at $14B valuation and is Europe’s top AI startup."

The investment positions ASML as the top shareholder in Mistral, a move that is also expected to secure ASML a seat on Mistral's board of directors. This partnership is seen as a crucial step towards reducing Europe's reliance on AI models and technologies predominantly developed in the United States and China. Bank of America reportedly advised ASML on this landmark transaction, though neither company has officially commented on the deal.

This collaboration between two European technology powerhouses reflects a broader trend of strategic investments aimed at fostering a more self-sufficient and competitive European tech ecosystem. Mistral, already backed by investors including Nvidia, continues to challenge established players like OpenAI and Google, with its rapid valuation growth highlighting the intense investor appetite for innovative AI solutions.