ASML, a provider of advanced chipmaking machinery, is poised to become the largest shareholder in French AI startup Mistral AI, Reuters reported citing sources familiar with the situation.
The Dutch company is reportedly investing €1.3bn (approximately $1.5bn) in Mistral’s latest funding round, which totals €1.7bn.
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This investment is anticipated to secure ASML a seat on Mistral’s board, sources told the news agency.
The funding round is set to elevate Mistral’s valuation to €10bn prior to the investment, making it the most valuable AI company in Europe.
ASML has refrained from commenting on the matter, while Mistral has not responded to requests for comment from Reuters.
Mistral is often regarded as a leading AI entity in France and Europe, competing against major US firms like OpenAI and Alphabet’s Google.
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By GlobalDataThe partnership between ASML and Mistral could enhance the capabilities of both companies, with ASML’s financial support potentially reducing Europe’s dependence on AI models from the US and China.
ASML is known for its lithography equipment, which is essential for producing advanced chips, and it employs AI to optimise the efficiency of its tools.
The integration of Mistral’s data analytics and AI expertise could further enhance ASML’s product offerings.
ASML is the exclusive supplier of extreme ultraviolet (EUV) lithography systems to leading chip manufacturers, including Taiwan Semiconductor Manufacturing Co and Intel.
Mistral, which has received backing from Nvidia, was valued at more than $6bn following its Series B funding round last year.
Recent reports indicated that Mistral is in discussions with MGX and other investors to secure an additional $1bn at a valuation of $10bn.
Founded in 2023 by Arthur Mensch, a former DeepMind researcher, alongside ex-Meta researchers Timothée Lacroix and Guillaume Lample, Mistral is rapidly establishing itself in the AI sector.
Bank of America is reported to have provided advisory services to ASML regarding its investment in Mistral, although the bank has declined to comment on the matter.
