Luxembourg partners with Mistral AI to bring artificial intelligence to government and defense

The Luxembourg government is partnering with the French AI startup Mistral AI to bring artificial intelligence into government, research, and defense.

The deal involves multiple ministries, including those responsible for the economy, digitalization, defense, and research, with the goal of integrating AI into public sector processes and positioning Luxembourg as a hub for sovereign data-driven industries.

As part of the multi-year partnership, Mistral AI will open an office in Luxembourg. The government plans to use the startup’s technology to move forward with projects from its national AI strategy, including tools for more efficient public services and better use of administrative data.

A key focus is collaboration with research institutions. According to the government, the two sides will work on joint projects around "trustworthy and explainable AI," especially for meeting legal requirements and deploying AI in sensitive fields.

Luxembourg’s armed forces are also on board. The defense ministry has signed its own contract with Mistral AI, aiming to integrate AI tools into military operations. The government says all AI solutions developed as part of the partnership will be hosted and managed locally.

All data stays in Luxembourg

Prime Minister Luc Frieden described the partnership as part of Luxembourg’s push to become a leader in European, data-sovereign AI. He said the partnership is about more than just the technology itself - it’s about putting AI to practical use in government, business, and everyday life.

Mistral AI CEO Arthur Mensch called it a contribution to Europe’s strategic autonomy. His company’s goal is to give governments the tools to use AI under their own control.

Recently, Mistral AI also launched its own cloud service and released its first reasoning model.