Mistral is reportedly seeking $1 billion in funding
French artificial intelligence startup Mistral is in advanced discussions to secure up to $1 billion in new equity funding, according to a Bloomberg report citing people familiar with the matter. The potential funding round is said to involve Abu Dhabi’s MGX fund, a $100 billion government-backed initiative focused on AI, as one of the key investors.
Alongside its equity raise, Mistral is reportedly seeking hundreds of millions of euros in debt financing from French lenders, including state-backed Bpifrance SACA. The combination of equity and debt would significantly boost Mistral’s financial firepower as it scales its operations and invests in infrastructure.
Mistral has quickly become one of Europe’s most prominent AI companies, gaining recognition for its open-weight large language models (LLMs) and its consumer-facing chatbot, Le Chat. Founded in 2023, the startup has already raised $1.19 billion in funding, with a post-money valuation of $6.51 billion following its Series B round in June 2024, according to data from PitchBook.
The company is also playing a central role in Europe’s efforts to develop AI sovereignty and reduce dependence on American and Chinese tech giants. Mistral is collaborating with MGX and U.S. chipmaker Nvidia to develop what is expected to be Europe’s largest AI data center campus. This project aligns with broader geopolitical goals, as the United Arab Emirates has pledged €50 billion to support AI initiatives in France, part of a wider strategic partnership with French President Emmanuel Macron’s government.
Mistral’s fundraising efforts come amid a global surge in AI investment, with governments and corporations racing to secure the computing infrastructure and talent needed to lead in next-generation technologies. If successful, this new round could position Mistral as Europe’s leading contender in the global AI landscape, competing with U.S. giants like OpenAI and Anthropic.
