ASML, a leading Dutch company in chipmaking technology, has announced a major investment of 1.3 billion euros ($1.5 billion) in Mistral AI, a fast-growing French artificial intelligence startup. The deal was revealed on Tuesday and marks a significant partnership between two of Europe’s most advanced technology players.
The investment gives ASML an 11% ownership stake in Mistral. The agreement also values the Paris-based startup at about 11.7 billion euros. This funding is part of a larger round worth 1.7 billion euros, which includes contributions from global investors such as chipmaker Nvidia and several venture capital firms.
ASML, headquartered in Veldhoven in the Netherlands, is widely seen as a crucial supplier in the global technology chain. Its machines are used to produce semiconductors, including the world’s most advanced microchips. These chips are essential for many technologies, from smartphones to artificial intelligence systems.
ASML’s equipment can cost hundreds of millions of dollars per unit and is critical to the semiconductor industry. However, due to trade restrictions, the company is not allowed to sell its most advanced machines to China. Despite these limits, ASML continues to expand its influence in global markets and strengthen alliances within Europe.
Mistral AI was founded in Paris two years ago by former researchers from Google DeepMind and Meta Platforms. In a short time, it has become one of Europe’s most recognized AI startups. Its most well-known product is Le Chat, a chatbot designed to rival global competitors.
Still, Mistral has faced challenges in keeping pace with U.S.-based companies like OpenAI, the creator of ChatGPT, and Chinese AI firms such as DeepSeek. This new partnership with ASML gives Mistral greater access to funding and advanced semiconductor technology, both of which are vital for scaling its AI systems.
The alliance between ASML and Mistral highlights Europe’s drive to strengthen its own technology sector. European policymakers have been concerned about heavy dependence on U.S. technology companies, particularly in areas such as cloud computing and mobile operating systems. These concerns grew during the presidency of Donald Trump, when disagreements over EU technology rules raised questions about the security of relying on American firms. By supporting homegrown champions like ASML and Mistral, Europe aims to create a stronger, more independent digital ecosystem.
With this deal, ASML and Mistral aim to combine expertise in semiconductors and artificial intelligence. Mistral brings its advanced AI research and models, while ASML contributes decades of industrial leadership and engineering knowledge. Together, they hope to accelerate progress in both fields and build technologies that can compete globally.
Mistral CEO Arthur Mensch said the partnership brings together frontier AI expertise with ASML’s unmatched industrial leadership and most sophisticated engineering capabilities. He added that the collaboration will help speed up innovation across the worldwide semiconductor and AI value chain.
The ASML-Mistral alliance represents a major milestone for Europe’s technology sector. It signals that European companies are ready to make bold investments to compete with American and Chinese leaders in both semiconductors and artificial intelligence. By combining resources, the two firms aim to reduce Europe’s reliance on foreign technology providers and build stronger foundations for future growth. If successful, this partnership could inspire similar alliances across the continent, driving further innovation in Europe’s digital economy.
