In a move that signals a new era for European technology, Dutch chipmaking giant ASML announced on September 9, 2025, that it is investing 1.3 billion euros ($1.5 billion) in French artificial intelligence startup Mistral AI. The deal, which forms a strategic partnership between two of Europe’s most prominent tech players, is being hailed as a landmark for the continent’s ambitions to compete with American and Chinese tech titans.
ASML, headquartered in Veldhoven, Netherlands, is a global powerhouse in semiconductor manufacturing equipment. Its machines are essential for producing the world’s most advanced microchips—the backbone of today’s artificial intelligence systems. Mistral, meanwhile, is a Paris-based startup founded just two years ago by former researchers from Google DeepMind and Meta Platforms. Despite its youth, Mistral has already become a darling of the European tech scene, seen by many as the region’s best shot at building a homegrown rival to the likes of OpenAI and Google.
The 1.3 billion euro investment gives ASML an 11% stake in Mistral, valuing the startup at 11.7 billion euros ($13.8 billion). According to Reuters, this makes Mistral the most valuable AI company in Europe. The investment is part of a larger funding round totaling 1.7 billion euros ($2 billion), which also includes high-profile backers such as DST Global, Andreessen Horowitz, Bpifrance, General Catalyst, Index Ventures, Lightspeed, and Nvidia. ASML’s position as lead investor is especially notable for a company that doesn’t typically invest in startups.
“ASML is proud to enter a strategic partnership with Mistral AI and to be lead investor in this funding round,” said Christophe Fouquet, ASML’s chief executive, in a statement reported by Bloomberg. “This collaboration aims to deliver clear benefits for our customers through AI-enabled innovations and opens the door to joint research for future opportunities.” Fouquet, who took the helm at ASML in 2024, is French himself—a detail that underscores the growing Franco-Dutch ties at the heart of this deal.
For Mistral, the partnership is an opportunity to accelerate its technology and extend its reach. The company develops agentic AI assistants and autonomous agents designed to help businesses streamline operations and make more informed decisions. “This investment unites two technology leaders in the same value chain,” said Arthur Mensch, CEO of Mistral AI, in a press release. “We aim to support ASML and its partners in solving today’s and tomorrow’s engineering challenges through AI, while advancing the entire semiconductor and AI ecosystem.”
ASML’s equipment is vital for manufacturing the high-performance chips that power AI applications. In fact, ASML is the only company in the world capable of making the machines needed to create the most advanced semiconductors, with each unit costing up to $400 million. These chips are the lifeblood of modern AI, enabling the vast data processing required for everything from chatbots to autonomous vehicles.
The deal also comes at a time of heightened concern in Europe about dependence on American technology. As noted by The New York Times, many European leaders worry that the continent’s slow progress in tech could leave it trailing the United States and China economically. The partnership between ASML and Mistral is being seen as a direct response to these anxieties, a bid to build a stronger, more independent European tech ecosystem. President Donald Trump’s confrontational stance toward EU tech regulations has only sharpened the debate over the region’s reliance on U.S. companies for cloud computing, operating systems, and more.
But while Mistral is Europe’s most valuable AI startup, it still operates on a different scale compared to its American peers. OpenAI, for example, is reportedly seeking a valuation of around $500 billion in a potential stock sale, more than 40 times Mistral’s current worth, according to Reuters. Chinese companies like DeepSeek and Alibaba are also formidable competitors in the race to dominate AI.
The partnership is not just about money. ASML will integrate Mistral’s AI models across its semiconductor equipment portfolio, aiming to improve product development and manufacturing processes. The Dutch company will also take a seat on Mistral’s strategic committee, represented by its finance chief, Roger Dassen. In an interview with The New York Times, Dassen emphasized that artificial intelligence is crucial to ASML’s future growth: “This is strategic. A.I. clearly is one of the key drivers of our business.” He added that working with Mistral would help ASML better understand and influence the direction of AI technology.
The deal also reflects a broader trend of convergence between AI developers and semiconductor manufacturers. As AI becomes increasingly central to business and society, the need for ever-more-powerful chips has grown exponentially. Data centers packed with semiconductors are required to train and run cutting-edge AI systems, creating unprecedented demand for ASML’s equipment.
ASML has faced its own set of geopolitical challenges. The U.S. government has blocked the company from selling its most advanced machines to China, citing national security concerns. More recently, ASML has also been affected by tariffs on imports to the United States. These pressures have made it even more important for the company to forge strong partnerships within Europe and diversify its customer base.
To further strengthen its French connections, ASML recently appointed former French Finance Minister Bruno Le Maire as a special adviser to its executive board. The company’s ability to navigate both the industrial and political landscape has been cited as a key asset. As ING analyst Jan Frederik Slijkerman told Reuters, “It helps that ASML is well connected to the industrial and political establishment to pick and choose its partners. There is an industrial rational to develop products together. For ASML it is probably easier to develop AI-based products through a partnership than to do this in house.”
For France, Mistral’s rise is a centerpiece of its strategy to become a leading player in global AI. The startup’s rapid ascent—from its founding in 2023 by a group of elite researchers to its status as Europe’s most valuable AI company—has made it a symbol of European innovation and ambition. Yet, as the funding numbers show, there’s still a long road ahead to catch up with America’s tech giants.
ASML’s shares responded positively to the news, rising 1% in early Amsterdam trading and giving the company a market value of 268 billion euros. The broader funding round, which brought in a mix of venture capital and strategic investors, is expected to provide Mistral with the resources it needs to scale up and compete on the world stage.
As Europe seeks to carve out a bigger role in the global technology landscape, the ASML-Mistral alliance stands out as both a bold statement and a practical step. By bringing together the continent’s leading chipmaker and its most promising AI startup, the partnership aims to accelerate innovation across the semiconductor and AI value chain—giving Europe a fighting chance in the global tech race.
With the ink now dry on this historic deal, all eyes will be on how these two European champions leverage their combined strengths to shape the future of technology, not just in Europe, but around the world.
