ASML (NASDAQ:ASML) (OTCPK:ASMLF) (NEOE:ASML:CA), the Dutch maker of advanced semiconductor equipment, is preparing to take a leading stake in French artificial intelligence company Mistral AI, Reuters reported Sunday, citing people familiar with the deal. The move is being framed as part of Europe’s effort to bolster its technological independence.
ASML is expected to commit €1.3 billion ($1.5 billion) toward Mistral’s €1.7 billion (approximately $2 billion) Series C fundraising, giving the chipmaking giant both a major equity position and a board seat at the Paris-based startup. The new round would value Mistral at €10 billion ($11.7 billion) pre-money, making it Europe’s most valuable AI company.
Neither ASML nor Mistral commented to Reuters on the talks.
Mistral, launched in 2023 by former DeepMind and Meta (META) researchers Arthur Mensch, Timothée Lacroix and Guillaume Lample, has quickly become Europe’s flagship AI startup, competing against U.S. players such as OpenAI and Google (GOOG) (GOOGL). Backed by Nvidia (NASDAQ:NVDA) and other global investors, Mistral was valued at more than $6 billion after its Series B round last year. Reports in recent weeks have suggested the latest financing could lift its valuation as high as $14 billion.
Analysts say the partnership would knit together two of Europe’s most important technology companies. ASML could benefit from Mistral’s AI capabilities to optimize its chipmaking tools, while Mistral would gain significant financial firepower to expand its research and offerings, potentially reducing reliance on U.S. and Chinese AI systems.
ASML is currently the only company in the world that produces extreme ultraviolet (EUV) lithography machines, indispensable to chipmakers like TSMC (TSM) (OTC:TSMWF) and Intel (INTC) for producing the most advanced semiconductors. Each EUV unit costs around $180 million.