Two major European technology companies have taken a significant step forward in artificial intelligence by joining forces through a substantial investment. Dutch semiconductor equipment manufacturer ASML (Euronext Amsterdam: ASML, NASDAQ: ASML) announced this week that it is investing about $1.5 billion (€1.3 billion) in Mistral AI, a French start-up that has quickly become one of Europe’s leading AI innovators.
Mistral AI, founded just two years ago by researchers formerly with DeepMind and Meta, has gained strong attention across Europe for its development of open-source large language models and AI tools geared specifically toward the European market. This investment comes as part of a larger €1.7 billion ($2 billion) Series C funding round that will nearly double the start-up’s valuation to approximately $13.8 billion (€11.7 billion). With ASML’s lead investment, the Dutch firm has secured approximately an 11% stake in Mistral, becoming its largest shareholder and obtaining a seat on the company’s board.
ASML plays a critical role in the semiconductor industry as the exclusive supplier of the highly specialized lithography equipment needed to produce the world’s most advanced computer chips. Its machines are vital to chip manufacturers and can cost hundreds of millions of dollars each. The collaboration aims to integrate Mistral’s AI technology into ASML’s operations, including supply chain management and research and development activities. Christophe Fouquet, ASML’s president and CEO, described the partnership as a way to bring clear benefits to ASML customers through AI-driven innovation across the company’s product portfolio.
The strategic nature of this partnership highlights growing awareness in Europe of the need to boost homegrown technology capabilities. Officials and industry leaders have expressed concern that Europe risks falling behind the United States and China if it remains overly dependent on foreign AI technology. Mistral has been touted as Europe’s best chance to compete with U.S. juggernauts like OpenAI, Google, and Anthropic by delivering AI models developed under European standards and for European users. The company also works closely with Nvidia for some hardware and infrastructure partnerships, aligning with other prominent players in the AI ecosystem.
The infusion of capital from ASML not only reinforces Mistral’s standing as Europe’s most valuable AI startup but also signals a trend of increased AI investments in the region. First half 2025 data show a 55% increase in startup funding for European AI firms, reflecting growing investor confidence that Europe can nurture competitive AI technology on its own terms.
Beyond the financial and strategic implications, the collaboration between Mistral and ASML could accelerate innovation in the semiconductor and AI fields alike. ASML’s software tools that support chip-making are as vital as their machines, and incorporating AI into areas such as computational lithography, machine learning for wafer metrology, and yield optimization could speed development cycles and improve overall equipment performance. Mistral’s ability to create open language models with transparent components might help customize AI applications specifically tailored to ASML’s engineering challenges.
While Mistral’s valuation of nearly $14 billion still pales compared to U.S. giants like OpenAI, valued in the hundreds of billions, its rapid rise and strategic partnerships signal an important shift for European technology ambitions. The investment also reflects broader geopolitical undertones, with some viewing the alliance as a way to strengthen Europe’s technological autonomy amid ongoing global trade tensions and competition.
In the coming years, this collaboration could serve as a model for closer ties between AI startups and semiconductor manufacturers in Europe, potentially shaping a more self-reliant and innovative tech ecosystem on the continent.
