ASML invests $1.5 billion in European AI leader Mistral

ASML is acquiring a stake in French AI company Mistral. With this $1.5 billion investment, ASML aims to strengthen European technological independence and reduce its dependence on American and Chinese AI models, according to sources speaking to Reuters. The investment will propel Mistral to a valuation of $11.7 billion, making it the most valuable AI company in Europe.

ASML's strategic move

ASML's investment in Mistral AI is a strategic move to gain a leading position in the European AI market. ASML is investing €1.3 billion (approximately $1.5 billion) in Mistral's Series C financing round, which totals €1.7 billion (approximately $2 billion). This makes ASML the largest shareholder in the French AI company. The deal positions Mistral as the most valuable AI company in Europe, with a pre-money valuation of €10 billion (approximately $11.7 billion). According to Reuters, ASML aims to secure a seat on Mistral's board of directors with this investment. This collaboration could lead to efficiency improvements and innovative product development by combining ASML's expertise in chip machines with Mistral's AI capabilities.

Strengthening European technological sovereignty

ASML's investment in Mistral is seen as an important step in strengthening European technological sovereignty. By supporting a strong European player in the AI market, ASML aims to reduce dependence on American and Chinese AI models. Mistral, often presented as the French and European AI champion, competes with American giants such as OpenAI and Google. A stake in Mistral connects two European technology leaders, and ASML's capital injection could help Mistral make Europe less dependent on AI models from the US and China. This is crucial because AI is playing an increasingly important role in various sectors, including the chip industry, where ASML is a dominant player.

Synergy between ASML and Mistral

ASML, a key supplier of advanced chip machines, also extensively utilizes AI to enhance the efficiency of its tools. The company could benefit from implementing Mistral's data analysis and AI capabilities to improve the performance of its tools and develop additional products. ASML is the sole supplier of extreme ultraviolet (EUV) lithography equipment to chip manufacturers, including TSMC and Intel. These EUV systems cost approximately $200 million each (up to €400 million for the latest models) and are essential for producing the most advanced chips. The collaboration with Mistral could help ASML maintain and further expand its technological lead.