ASML invests $1.5B in French AI startup Mistral, forming European tech alliance

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LONDON (AP) — ASML, a leading Dutch maker of chipmaking gear, is investing 1.3 billion euros ($1.5 billion) into French artificial intelligence startup Mistral AI, the two said on Tuesday, announcing a partnership between two of Europe's top technology companies.

ASML Holding, based in Veldhoven, Netherlands, holds an important role in the global tech industry because it makes equipment used to manufacture semiconductors, including the most advanced microchips used for cutting-edge AI systems.

Mistral was founded two years ago in Paris by former researchers at Google DeepMind and Meta Platforms and quickly became a European tech darling.

The partnership underscores Europe's efforts to reduce exposure to American technology. President Donald Trump's increasingly hostile attitude to European Union tech regulations has fueled debate about whether the continent is too dependent on services provided by U.S. tech companies such as cloud computing and mobile operating systems.

Mistral makes the Le Chat chatbot but it has struggled to keep up with American AI companies like ChatGPT-maker OpenAI, and Chinese rivals like DeepSeek.

ASML's chipmaking equipment can cost hundreds of millions of dollars but the U.S. government has blocked it from selling its most advanced machines to China.

The deal gives ASML an 11% stake in Mistral, and values the startup at about 11.7 billion euros. The 1.3 billion euro investment is part of a larger funding round worth 1.7 billion euros, which also involves venture capital firms and chipmaker Nvidia.

Mistral CEO Arthur Mensch said in a press release that the alliance combines Mistral's “frontier AI expertise with ASML’s unmatched industrial leadership and most sophisticated engineering capabilities."

“Together, we will accelerate technological progress across the global semiconductor and AI value chain," Mensch said.