French AI Startup Mistral AI Secures €2 Billion Investment, Valued at $14 Billion
French AI startup Mistral AI is finalizing a €2 billion investment at a post-money valuation of $14 billion, making it one of Europe’s most valuable tech startups. The company, founded by former DeepMind and Meta researchers, specializes in open source language models and Le Chat, an AI chatbot tailored for European audiences.
While Mistral has not officially confirmed the news, sources report that this funding round would mark its first significant raise since June 2024, when it was valued at €5.8 billion. Notable investors in Mistral include Andreessen Horowitz and General Catalyst, with previous funding rounds totaling over €1 billion.
This investment comes amidst a surge in European AI startups, with a 55% increase in year-on-year investments in Q1 2025. Twelve European startups have achieved unicorn status in the first half of the year, highlighting the region’s growing prominence in the AI industry. Sweden’s Lovable, an AI coding platform, reached a $1.8 billion valuation just eight months after its launch, further demonstrating the momentum of European AI companies.
