French AI Giant Mistral Nears $14 Billion Valuation
▼ Summary
– Mistral AI is finalizing a €2 billion investment at a $14 billion valuation, making it one of Europe’s most valuable tech startups.
– The two-year-old company, founded by former DeepMind and Meta researchers, develops open source language models and the Le Chat chatbot for European audiences.
– This would be Mistral’s first major funding round since June 2024, when it was valued at €5.8 billion, having previously raised over €1 billion from investors like Andreessen Horowitz.
– European AI startups are gaining unprecedented momentum, with 55% more year-on-year investment in Q1 2025 and 12 achieving unicorn status in the first half of the year.
– Sweden’s Lovable AI coding platform exemplifies this surge, reaching a $1.8 billion valuation in July just eight months after its launch.
French artificial intelligence company Mistral AI is reportedly closing a massive €2 billion funding round that would value the firm at an impressive $14 billion, according to sources familiar with the matter. This development places the Paris-based startup among Europe’s most valuable technology enterprises, signaling robust investor confidence in its growth trajectory and strategic vision.
Founded just two years ago by a team of former researchers from DeepMind and Meta, Mistral has rapidly emerged as a significant player in the global AI landscape. The company specializes in developing open source language models and has gained attention for its consumer-facing product, Le Chat, an AI chatbot tailored specifically for European users. While Mistral has not officially confirmed the funding news, this round would mark its most substantial capital infusion since June 2024, when it achieved a valuation of €5.8 billion.
To date, the startup has secured more than €1 billion from a roster of high-profile backers, including venture capital heavyweights Andreessen Horowitz and General Catalyst. Their continued support underscores the market’s belief in Mistral’s potential to compete with established giants like OpenAI.
This latest investment arrives amid a broader surge in European AI funding. Data from Dealroom indicates that investment in AI startups across the continent grew by 55% year-on-year in the first quarter of 2025. During the first half of the year, a dozen European AI firms reached unicorn status, reflecting a vibrant and rapidly maturing ecosystem.
Among the standout performers is Sweden’s Lovable, an AI-powered coding assistant that reached a $1.8 billion valuation only eight months after its launch. Together, these companies illustrate Europe’s accelerating influence and innovation in the global artificial intelligence sector.
(Source: TechCrunch)
