French artificial intelligence startup Mistral has secured a valuation of nearly $14 billion following a major Series C funding round led by Dutch chip equipment giant ASML. The round raised €1.7 billion, with ASML contributing €1.3 billion to take an 11% stake in the company on a fully diluted basis. The investment makes ASML one of Mistral’s largest shareholders and marks a significant bet on Europe’s growing role in the global AI race.

The fundraising represents a dramatic leap in valuation for Mistral, more than doubling the €5.8 billion level reached during a €600 million round just last year. Other prominent investors also participated, including Nvidia, DST Global, Andreessen Horowitz, Bpifrance, General Catalyst, Index Ventures, and Lightspeed. The influx of capital reflects surging investor appetite for companies developing cutting-edge AI technologies, as global demand for advanced models continues to expand.

Founded in 2023, Mistral has quickly emerged as one of Europe’s most competitive AI firms and a regional challenger to U.S. and Chinese heavyweights such as OpenAI and DeepSeek. The company specializes in building large language models, which underpin a wide range of AI applications from chatbots to advanced reasoning tools. Such models require enormous investments in computing infrastructure, making sustained funding critical to maintaining competitiveness.

Mistral’s CEO, Arthur Mensch, said earlier this summer that the firm is preparing to launch its first reasoning model, designed to excel at mathematics and coding. This model is part of Mistral’s broader effort to establish itself as a credible alternative to industry leaders. However, despite its rapid rise, the company still trails OpenAI by a wide margin; the U.S. firm’s recent $10.3 billion secondary share sale lifted its valuation to $500 billion, nearly 36 times higher than Mistral’s.

Analysts say ASML’s investment underscores the strategic link between chip technology and AI development. As the world’s top supplier of advanced semiconductor manufacturing equipment, ASML is deeply embedded in the global tech supply chain. Its backing of Mistral not only signals confidence in the startup’s potential but also reflects Europe’s determination to carve out a stronger role in the increasingly competitive field of artificial intelligence.

Source: CNBC.