ASML just dropped $1.5 billion on Mistral AI to fuse chips and code

In a massive boost for Europe’s AI ambitions, Dutch semiconductor giant ASML is investing €1.3 billion ($1.5 billion) in French startup Mistral AI, becoming its largest shareholder. The deal, part of a larger €1.7 billion funding round, values Mistral at €11.7 billion and establishes a strategic partnership to embed Mistral’s artificial intelligence directly into the complex process of designing and manufacturing next-generation chips.

The investment gives ASML, the world’s only supplier of critical extreme ultraviolet (EUV) lithography machines, an 11 percent stake in Mistral and a seat on the French startup’s strategic committee for its CFO, Roger Dassen. The funding round, which also included previous investors like Nvidia and Andreessen Horowitz, dramatically elevates Mistral’s valuation from the €5.8 billion it reached just a year ago, underscoring the intense investor interest in AI.

A strategic mashup of hardware and software

This isn’t just a financial play for ASML; it’s a deep strategic collaboration. The company plans to apply Mistral’s AI models across its research, development, and operations to improve the performance of its lithography systems. The goal is to use AI for everything from enhancing chip pattern accuracy and predictive maintenance to accelerating R&D, ultimately helping chipmakers like Intel and Samsung bring products to market faster. “The collaboration between Mistral AI and ASML aims to generate clear benefits for ASML customers through innovative products and solutions enabled by AI,” said ASML CEO Christophe Fouquet.

Europe’s bid for ‘tech sovereignty’

The alliance is being framed as a landmark moment for Europe’s long-held goal of “digital sovereignty.” For years, the EU has worried about its dependence on US and Chinese technology. This deal pairs the continent’s most valuable tech company with its most promising AI startup, creating a homegrown powerhouse intended to reduce reliance on Silicon Valley.

Founded in 2023 by former researchers from Google and Meta, Paris-based Mistral has quickly positioned itself as Europe’s answer to OpenAI. While its new €11.7 billion valuation is impressive, it’s still a fraction of OpenAI’s rumored $500 billion valuation. However, with ASML’s substantial backing and access to its vast network of chipmakers, Mistral now has significant firepower and credibility to scale its open-source-focused AI models and compete on the global stage.