By Supantha Mukherjee and Foo Yun Chee
STOCKHOLM/BRUSSELS (Reuters) -Dutch chip-gear maker ASML’s $1.5 billion investment in French artificial intelligence firm Mistral has given a shot in the arm to Europe’s AI ambitions and hopes for more regional tech sovereignty against the dominance of U.S. and Asian rivals.
The deal, first reported by Reuters and confirmed on Tuesday, will see ASML become the top shareholder of Mistral, often presented as Europe’s AI champion in a sector in which U.S. giants such as OpenAI and Alphabet’s Google hold sway.
The move, which gives ASML an 11% stake in the firm that has received big U.S. funding, drew cheers from around Europe, where the global trade conflict with U.S. President Donald Trump has shone a harsh spotlight on weaknesses in European tech and AI.
“ASML’s stake in Mistral AI is a game-changer for Europe,” EU lawmaker Stephanie Yon-Courtin, who is involved in regional tech issues, told Reuters, adding it paired the region’s best semiconductor expertise with cutting-edge AI.
“It strengthens our digital sovereignty, boosts innovation, and sends a clear signal to global Big Tech: Europe is ready to lead, not follow.”
Europe’s tech lag has spooked political and industry leaders. It has no real rivals to U.S. behemoths such as Meta, Nvidia, Microsoft or OpenAI, whose valuations reach into the trillions of dollars.
Mistral, backed by U.S. funds such as DST Global, Andreessen Horowitz and General Catalyst, is valued at just under $12 billion in its latest fundraising.
European leaders from French President Emmanuel Macron to German Chancellor Friedrich Merz have been calling for digital sovereignty of Europe, as they are increasingly wary of the continent’s dependency on U.S. tech companies, and after drawing ire from the U.S. President Donald Trump over issues from trade to defence.
In a bid to fight back, in September last year, former Italian Prime Minister Mario Draghi issued a nearly 400-page report on what the European Union needs to do to keep pace economically with rivals.
‘MINDSET SHIFT’
Analysts said the practical benefits of the ASML-Mistral tie-up remained to be seen despite the firms touting plans to solve “future engineering challenges through AI”. Most focused on the strong political message it sent.
“This move reflects the mindset shift taking place across Europe,” said Sten Tamkivi, partner at venture capital firm Plural, which has backed companies like Germany’s Helsing, an AI start-up active in the defence sector.
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