Mistral AI is set to raise €2 billion at a $14 billion valuation

Ken Metral

03 Sep 2025 — 1 min read

Credit: Mistral AI

French artificial intelligence startup Mistral AI is finalizing a €2 billion investment round that would value the company at $14 billion, according to a Bloomberg report. If completed, the deal would cement Mistral’s place among Europe’s most valuable tech startups and intensify competition with U.S.-based AI leaders like OpenAI.

Founded just two years ago by former DeepMind and Meta researchers, Mistral has quickly become a prominent player in the global AI landscape. The company develops open-source language models and Le Chat, its AI chatbot tailored for European users.

Mistral declined to comment on the reported funding, which would mark its first significant raise since June 2024, when it was valued at €5.8 billion. To date, the company has secured more than €1 billion in backing from major investors, including Andreessen Horowitz and General Catalyst.

A Booming European AI Scene

Mistral’s rapid rise reflects the broader momentum of Europe’s AI sector. According to Dealroom data, European AI startups attracted 55% more investment year-on-year in Q1 2025, signaling growing confidence in the region’s ability to produce global leaders in artificial intelligence.

So far this year, 12 European AI startups have reached unicorn status, highlighting a wave of innovation across the continent. Among the standout newcomers is Sweden’s Lovable, an AI-powered coding platform that hit a $1.8 billion valuation in July 2025, just eight months after its launch.

What’s Next for Mistral

With fresh capital, Mistral is expected to accelerate product development, expand its research capabilities, and strengthen its position as Europe’s homegrown alternative to U.S.-based AI firms. The company’s emphasis on open-source models and European-centric design could also resonate with regulators and businesses seeking greater transparency and sovereignty in AI development.

If the funding closes as reported, Mistral will not only solidify its leadership in Europe’s AI ecosystem but also become a formidable challenger in the global AI race.

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