ASML invests €1.3 billion in French AI startup Mistral
ASML Holding, the Dutch semiconductor equipment giant, is making a bold bet on artificial intelligence by investing €1.3 billion ($1.5 billion) in Paris-based startup Mistral AI. The deal, announced Tuesday, gives ASML an 11% stake in Mistral and values the two-year-old company at roughly €11.7 billion — making it one of Europe’s most valuable AI startups.
The investment is part of a broader €1.7 billion funding round that also includes backing from venture capital firms and chipmaker Nvidia, highlighting the intense global race to advance cutting-edge AI.
Europe’s tech independence push
The ASML–Mistral partnership brings together two of Europe’s most important technology players at a moment when the continent is striving to reduce reliance on U.S. platforms and services. Policymakers have long worried that Europe’s digital ecosystem is too dependent on American companies in cloud computing, operating systems, and AI.
That debate has sharpened in recent years, especially amid tensions between Brussels and Washington over tech regulation. By aligning with ASML, Mistral gains not only funding but also a symbol of European technological sovereignty.
Bridging semiconductors and AI
ASML, headquartered in Veldhoven, Netherlands, is the only company in the world capable of producing extreme ultraviolet (EUV) lithography machines — essential equipment for manufacturing the most advanced semiconductors. These chips power everything from smartphones to the latest AI systems.
While U.S. export restrictions have blocked ASML from selling its most sophisticated equipment to China, its machines remain indispensable to the global supply chain.
Mistral, meanwhile, was founded in 2023 by former Google DeepMind and Meta researchers. It has quickly risen to prominence in Europe’s AI landscape, known for its open-source large language models and consumer-facing chatbot, Le Chat. But the startup faces steep competition from American heavyweights like OpenAI and Anthropic, as well as Chinese challengers such as DeepSeek.
“Accelerating technological progress”
In a joint statement, Mistral CEO Arthur Mensch said the partnership unites “Mistral’s frontier AI expertise with ASML’s unmatched industrial leadership and most sophisticated engineering capabilities.”
“Together, we will accelerate technological progress across the global semiconductor and AI value chain,” Mensch added.
For ASML, the investment represents a move beyond its traditional role in hardware into the fast-growing AI sector. For Mistral, it provides capital, credibility, and a powerful industrial ally at a time when the AI race is dominated by U.S. and Chinese firms.
A European power play
By linking semiconductors with artificial intelligence, the ASML–Mistral deal could help Europe carve out a more competitive position in the global tech race. With funding secured, Mistral will now face the challenge of turning its rapid growth and deep research pedigree into products that can rival those of its American and Asian peers.
If successful, the alliance may come to symbolize Europe’s ambition to not only participate in, but also shape, the future of both AI innovation and the semiconductor supply chain.
