Dutch semiconductor equipment giant ASML Holding NV (ASML.AS) has emerged as the largest shareholder in French artificial intelligence startup Mistral AI after leading the company’s latest funding round, people familiar with the matter told Reuters.
ASML committed €1.3 billion ($1.5 billion) to Mistral’s €1.7 billion (~$2 billion) Series C round, securing a board seat and giving the startup a pre-money valuation of €10 billion ($11.7 billion). The fundraising positions Mistral as Europe’s most valuable AI company and bolsters its standing as the region’s leading challenger to U.S. firms such as OpenAI and Google.
Founded in 2023 by former DeepMind researcher Arthur Mensch and ex-Meta engineers Timothée Lacroix and Guillaume Lample, Mistral has grown rapidly. It was valued at over $6 billion following a Series B round in 2024 and counts Nvidia among its backers. Recent reports suggested the company was targeting valuations between $10 billion and $14 billion in ongoing fundraising discussions.
The investment strengthens links between two of Europe’s most advanced technology leaders. ASML, the sole producer of extreme ultraviolet (EUV) lithography systems critical to state-of-the-art chip manufacturing, already integrates AI into its tools. By partnering with Mistral, it could further enhance the efficiency and performance of its systems while helping Europe reduce reliance on foreign AI technologies.
Each EUV system costs about $180 million and is indispensable to chipmakers such as Taiwan Semiconductor Manufacturing Co. and Intel. Analysts say ASML’s involvement in Mistral could accelerate innovation across both hardware and AI, reinforcing Europe’s strategic ambitions in advanced technologies.
Neither ASML nor Mistral responded to requests for comment. Bank of America advised ASML on the transaction but declined to provide details.
