ASML Invests €1.3 Billion in Mistral AI, Forms European Tech Alliance

ASML Holding said Tuesday it will invest 1.3 billion euros ($1.5 billion) in Paris-based artificial intelligence startup Mistral AI, taking an 11% stake and joining a broader €1.7 billion funding round that also includes Nvidia and several venture capital firms. The transaction values Mistral at about €11.7 billion and creates a strategic partnership linking a leading semiconductor equipment maker with one of Europe’s fastest-growing AI companies.

The companies said the alliance will combine Mistral’s AI research and software capabilities with ASML’s engineering and industrial experience across the semiconductor manufacturing chain. Mistral was founded two years ago by former researchers from Google DeepMind and Meta Platforms and is known for its Le Chat chatbot, though it has trailed larger U.S. and Chinese AI providers in market scale and resources.

Mistral’s chief executive, Arthur Mensch, said in a statement that the deal "combines Mistral's frontier AI expertise with ASML’s unmatched industrial leadership and most sophisticated engineering capabilities" and that together the companies will "accelerate technological progress across the global semiconductor and AI value chain."

ASML, based in Veldhoven in the Netherlands, manufactures equipment used to make semiconductors, including machines critical to producing the most advanced microchips used in leading AI systems. Those machines can cost hundreds of millions of dollars, and access to the most advanced lithography tools has become a focal point of international trade and technology policy. The U.S. has restricted sales of certain advanced equipment to China, limiting ASML’s ability to sell its most advanced machines there.

European officials and industry leaders have framed the deal as part of a broader effort to reduce reliance on U.S. and Asian technology providers for key parts of the digital economy, including cloud services and mobile operating systems. The partnership is one of several moves by European firms and governments to bolster domestic capabilities in semiconductors and artificial intelligence.

Financial details released by the companies show ASML’s investment represents a significant minority stake and forms a key element of the larger financing round. Nvidia, the U.S. chip designer whose processors are widely used to train AI models, is reported to be among the other investors, underscoring the cross-industry nature of the transaction that ties hardware manufacturers, chip designers and AI software developers.

Regulators in Europe and elsewhere have been scrutinizing the rapid growth of AI and its concentration among a few large firms. Mistral positioned itself as a European alternative to U.S. and Chinese AI firms when it launched, drawing attention and capital as the continent sought to nurture homegrown technology champions. Despite that enthusiasm, the company faced the technical and commercial challenge of scaling to match the resources and infrastructure available to larger competitors.

ASML executives have said the investment will enable closer cooperation on optimizing AI workloads and semiconductor design-for-manufacture workflows, though the companies offered few specifics about joint products or timelines. Analysts say tighter links between chipmakers and AI developers could streamline the development of hardware-software co-design, which can improve performance and reduce costs for AI systems.

The €1.7 billion round, of which ASML’s contribution was €1.3 billion, will also be used by Mistral to expand its engineering teams, scale computing capacity and accelerate product development, according to the companies. The investment highlights growing interdependence between the semiconductor supply chain and AI developers as nations and firms aim to secure critical technology capabilities.

The deal is expected to draw attention from policymakers monitoring the strategic implications of technology consolidation and cross-border investments. ASML and Mistral said they would work within applicable regulatory frameworks and did not indicate that any approvals were required beyond standard corporate processes. The companies did not provide a timetable for closing the investment.