Luxembourg has signed a strategic partnership with Mistral AI, one of Europe’s fastest growing artificial intelligence companies, to support the country’s digital transformation and AI adoption, the government said in a press release on Tuesday.
Under the deal, Mistral will open an office in Luxembourg and work with state institutions on AI systems, with a focus on data sovereignty and on-premise infrastructure, the government has said.
The partnership, signed by Prime Minister Luc Frieden and several ministers including those responsible for defence, the economy, digitalisation and research, will see Mistral collaborate on projects across government, public research institutions and the Luxembourg Armed Forces.
“This partnership is a crucial step in our strategy to make Luxembourg a world leader in the sovereign data economy,” said Prime Minister Frieden. “European-style artificial intelligence, with a Luxembourgish touch. Beyond the development of new AI tools, it is above all the adoption of new technologies by citizens, businesses and public administration that will make all the difference.”
As part of the agreement, the Ministry of Defence has signed a contract with Mistral to support the military’s use of artificial intelligence. AI tools will also be developed to improve public services and digital governance, particularly through the use of public sector data.
All systems provided under the deal will be hosted on-site in Luxembourg to comply with strict national requirements for data protection and cybersecurity. “The common thread of this partnership remains Luxembourg’s data sovereignty,” the government said in a statement. “Solutions offered in this collaboration are all hosted on-premises, ensuring that sensitive data remains under the exclusive control of the state.”
Mistral CEO Arthur Mensch said the agreement reflects a “commitment to European strategic autonomy,” adding: “We are proud of this partnership, which places AI at the service of the demanding protection of state data.”
Founded in 2023 and headquartered in Paris, Mistral AI is one of Europe’s most prominent AI startups, specialising in large language models and AI infrastructure.
The company is valued at around €5.8 billion following a €600 million funding round in 2024. Its open-source and proprietary models – including Mistral 7B and Mixtral – have attracted partnerships with Microsoft and French bank BNP Paribas.
