Paris-based AI start-up Mistral is reported to be finalising a Series C round of $2bn. Reuters reports Dutch ASML is set to become top shareholder.

Europe’s AI darling, Paris-based Mistral, which was founded in 2023, is staying tight-lipped but Bloomberg is reporting that an upcoming fundraising round of more than $2bn could value the company at $14bn, making it one of Europe’s most valuable tech start-ups. Reuters meanwhile says Dutch chips firm ASML will be by far the biggest investor in this round, making it the largest shareholder, and giving it a place on Mistral’s board.

Founded by former Google DeepMind researcher Arthur Mensch, and ex Meta researchers Guillaume Lample, and Timothée Lacroix – the three all studied at École Polytechnique in Paris – Nvidia-backed Mistral has a stated mission of “democratising artificial intelligence through open-source, efficient, and innovative AI models, products, and solutions”, and a B round raise in July 2024, already valued the young start-up at $6bn last year.

The raise happens at a time when its giant US competitors like Anthropic and OpenAI are raising major rounds. Anthropic confirmed last week it had raised $13bn in a funding round led by Iconiq, valuing the company at a post-money $183bn, cementing its place as a real competitor to OpenAI, which has been busy fundraising this year too. Along with Iconiq, Anthropic’s round was co-led by Fidelity Management & Research Company and Lightspeed Venture Partners.

It’s hoped that Mistral’s latest round will give the French start-up a war chest to help create a true European competitor to the US and China in the Gen AI space.

An exclusive from Reuters cites anonymous sources who say Dutch maker of chipmaking equipment, ASML, will be the biggest investor in this round, committing some $1.5bn, making it the top shareholder at the young AI company, and taking a seat on the board. When confirmed the raise will make Mistral the most valuable AI start-up in Europe.

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