France-based start-up Mistral AI reportedly engaged in conversations with Abu Dhabi-based investment company MGX and other investors to raise up to $1 billion in equity.
Bloomberg reported in addition to the equity financing, the AI start-up is in talks for hundreds of millions of euros in debt from France-based lenders including Bpifrance SACA, which is a previous investor in Mistral AI.
The news agency stated the discussions are in a preliminary stage and could change.
Bloomberg reported Mistral AI is key to French President Emmanuel Macron’s plan for AI sovereignty across Europe in the face of competition from US-based companies including OpenAI, Google and Microsoft.
In February, President Macron pledged €109 billion for local AI infrastructure to better compete against US and China-based AI companies.
Mistral AI, MGX and Nvidia also plan to build Europe’s largest AI data centre in France.
UAE President Sheikh Mohamed bin Zayed Al Nahyan visited France in February and committed to investing up to €50 billion in French data centres.
In 2024, Mistral AI secured €600 million led by tech-focused investment company General Catalyst, with its valuation increasing to almost €6 billion.