ASML becomes the largest shareholder in Mistral AI

Dutch chipmaker ASML is investing 1.3 billion euros in French AI startup Mistral AI in a bid to boost Europe's tech independence. The deal puts Mistral's valuation at nearly $12 billion.

Reuters reports that ASML is leading a Series C funding round totaling 1.7 billion euros (about $2 billion), making it Mistral's largest shareholder. ASML supplies the world's only EUV lithography systems, which are essential for manufacturing high-performance chips. Customers like TSMC and Intel reportedly pay around $180 million for each EUV machine. As part of the investment, ASML will take a seat on Mistral's board.

Europe's answer to OpenAI

Founded in 2023, Mistral AI has quickly become the only possible European rival to US leaders like OpenAI and Google Deepmind. The company's founders include Arthur Mensch, formerly of Deepmind, and ex-Meta engineers Timothée Lacroix and Guillaume Lample. Mistral is also backed by US tech giants Nvidia and Microsoft.

Sources told Reuters that ASML's stake is meant to help reduce Europe's dependence on American and Chinese AI models. By teaming up, two of the region's biggest tech players are aiming to strengthen the EU's digital sovereignty.