ASML Makes a Bold Move into AI with €1.3 Billion Investment in Mistral, Targeting US Model Independence

TradingKey - On Monday, reports emerged that semiconductor equipment manufacturer and lithography giant ASML has announced its investment in French AI startup Mistral AI, committing €1.3 billion to become the company's largest shareholder. This collaboration between the two European tech firms is seen as an effort to reduce Europe's reliance on US AI models.

ASML took a major role in Mistral's latest funding round, which totaled €1.7 billion, not only becoming the startup's largest shareholder but also securing a seat on the board of directors, thus gaining a say in corporate governance.

As the sole supplier of EUV lithography equipment, ASML's machines are critical for producing high-end chips. With this investment, ASML aims to leverage Mistral's data analysis and AI capabilities to enhance its own equipment's performance, positioning itself within the rapidly growing AI development wave.

For Mistral, this funding round will elevate its valuation to €12 billion, making it Europe's most valuable AI company. Following a Series B round last year supported by Nvidia, the company's valuation had already surpassed $6 billion, reflecting investor confidence in its prospects.

Moreover, ASML's financial backing could help Mistral reduce Europe's dependency on AI models from China and the US. Since its founding in 2023, Mistral has been regarded as a European AI champion, with competitors including US tech giants like OpenAI and Google.

Industry experts believe Mistral's strength lies in its open-weight large language models, which offer companies greater transparency and flexibility compared to proprietary systems developed by others. ASML's investment aligns with its broader strategy to explore markets like India amid geopolitical tensions affecting its China business and to bolster Europe's standing in key AI technologies.