Europe's answer to OpenAI just got a $1.5 billion boost from chip giant ASML (www.businessinsider.com)

French AI startup Mistral has secured a landmark $1.5 billion investment from Dutch chip giant ASML, doubling its valuation to nearly $13.8 billion and establishing it as Europe’s most valuable AI startup. This funding is part of a larger $2 billion Series C round that also includes heavyweights like Nvidia, Andreessen Horowitz, and DST Global. With ASML taking an 11% stake, the partnership signals a strategic alignment between AI innovation and semiconductor manufacturing, underscoring Europe’s push to build homegrown AI capabilities rivaling dominant players like OpenAI. Mistral is distinguished by its development of large language models with open weights, providing transparency and accessibility to how their models function post-training, although the full source code remains proprietary. ASML intends to integrate Mistral’s AI technology into its own supply chains and R&D efforts to tackle complex engineering challenges, highlighting the growing importance of AI-driven solutions in advanced manufacturing. This collaboration also reflects a broader trend of semiconductor companies investing selectively in AI startups to secure technology leadership, complementing Nvidia’s prior partnership with Mistral to support sovereign AI infrastructure across Europe. The deal bolsters Europe’s AI ambitions by combining cutting-edge machine learning with semiconductor expertise, aiming to reduce reliance on foreign AI ecosystems and promote “AI sovereignty.” As Mistral scales with backing from industry leaders, its open-weight models and strategic investor network could accelerate innovation and deployment of AI technologies tailored to regional needs, marking a significant milestone for the continent’s tech ecosystem.