Europe's answer to OpenAI just got a $1.5 billion boost from chip giant ASML

French AI startup Mistral has made headlines by securing a substantial investment of €1.3 billion (approximately $1.5 billion) from Dutch chip manufacturer ASML. This funding is part of a larger $2 billion financing round, announced on Tuesday, positioning Mistral as a formidable competitor to OpenAI in the European AI sector. With ASML acquiring an approximate 11% stake in Mistral, it becomes the largest shareholder of the startup. ASML, valued at $308 billion, is renowned for its production of specialized machinery crucial for chip manufacturing. This investment effectively doubles Mistral's valuation to nearly $13.8 billion, solidifying its status as Europe's most valuable AI startup. Although Mistral's funding is significant, it still pales in comparison to OpenAI, which has raised nearly $60 billion overall. Mistral is recognized for developing large language models that feature open weights, allowing transparency concerning their operational mechanics, though the complete source code remains unavailable. Christophe Fouquet, ASML's president and CEO, highlighted the intention to integrate Mistral's AI technology into ASML's supply chains and research and development efforts. Arthur Mensch, Mistral's co-founder and CEO, expressed confidence that this partnership would enable ASML to address both current and future engineering challenges through AI. The Series C funding round also attracted other notable investors, including DST Global, Andreessen Horowitz, and Nvidia, all of whom have previously backed Mistral. Unlike Nvidia, which is known for its numerous startup investments, ASML adopts a more selective approach. The last direct investment made by ASML was in Smart Photonics in 2023, although it has previously supported venture funds like DeepTechXL. This collaboration marks another strategic alliance between Mistral and its semiconductor investors. Earlier this year, Nvidia also announced a partnership with Mistral, providing Nvidia chips for the startup's AI infrastructure platform. CEO Jensen Huang and Mensch have both emphasized the importance of 'AI sovereignty,' advocating for nations to utilize their own AI resources and data within their borders.