This article first appeared on GuruFocus.
ASML (ASML, Financials) is taking a major stake in French startup Mistral AI after leading a $2 billion funding round that values the company at $11.7 billion, people familiar with the deal said.
The Dutch chipmaking equipment giant is putting in about $1.5 billion, making it Mistral’s biggest shareholder and securing a board seat. The move ties together two of Europe’s most important tech players as the region pushes to reduce reliance on U.S. and Chinese AI leaders.
For ASML, the deal could bring Mistral’s AI tools into its chipmaking systems, while giving Mistral the backing of a global semiconductor supplier. ASML is the only maker of extreme ultraviolet lithography machines, used by chipmakers like TSMC and Intel to build the most advanced processors.
Mistral, founded in 2023 by former DeepMind and Meta researchers, has quickly become Europe’s AI champion. Nvidia invested in earlier rounds, and the company is now valued almost twice as high as it was just a year ago.
The deal shows how Europe is trying to close the gap with U.S. rivals in both chips and AI and how ASML is stepping beyond hardware into the broader technology race.