ASML Leads $2 Billion Funding Round Valuing French AI Startup Mistral at $14 Billion

Mistral has a team deployed in the London offices of HSBC to create AI tools for its 200,000 employees to automate tasks like compliance checks, according to HSBC’s CIO Stuart Riley.

' Mistral has contracts with French government agencies including its military and bureau for job seekers. The company is working with Singapore’s military and the governments of Greece and Luxembourg. A German state government is scrapping Microsoft Office for official business.

France is rolling out its own alternative to Zoom for video calls. President Trump’s trade war, threats to annex Greenland, and promises to shield American tech companies from regulation have sparked concerns about reliance on American technology, @Forbes reported. Mistral’s best model performs worse than a version of Anthropic’s Claude released nine months earlier, per one popular benchmark.

Mistral’s best model is bested by open-weight models from DeepSeek and Alibaba. ' Mistral has 700 staff members. U.S. and other non-European clients, according to Mensch. Mistral launched a specialized AI model in February 2026 designed for superfast voice transcription.

The company launched Le Chat app that scored 1 million downloads within its first seven weeks, the majority in France, per Appfigures. Mistral is developing its own data centers, starting with one outside Paris, Mensch said. Mistral projects its data center will have 200 megawatts of capacity by the end of 2027.

The data center buildout could cost an estimated $5 billion. Mistral tapped oil-rich Abu Dhabi and sought debt financing for the data center. ' OpenAI and Anthropic have raised more than $200 billion over the last two years.

OpenAI is valued at $840 billion and brought in around $13 billion in revenue last year. According to a Menlo Ventures survey of 500 American enterprise business executives, Anthropic has 40% market share, OpenAI has 27%, and Mistral has 2%.

Meta spent $70 billion on AI last year and delayed the launch of a new model. OpenAI’s 2025 open-weight companion to GPT-5 has not seen the same adoption as others, according to data from Hugging Face. Palantir has a $330 billion market cap, and its CEO is Alex Karp.

Mistral is based in Paris. Arthur Mensch was born in a Paris suburb to a physics teacher mother and a father who runs a small computer server company. Mensch’s grandfather worked on health data systems.

Mensch crossed paths with Guillaume Lample at École Polytechnique in Paris. Guillaume Lample is 35 years old. D. in AI at Pierre and Marie Curie University, now part of the Sorbonne. Lample worked at Meta’s AI research arm, where he worked with Timothée Lacroix.

Timothée Lacroix is 34 years old. D. from the University of Paris-Saclay. Arthur Mensch did two years of postdoctoral research before landing at Google’s Paris office in 2020, working on DeepMind. In 2020, Mensch worked on a paper at Google’s Paris office showing large language models could be built less expensively.

Lacroix and Lample used ideas from Mensch’s paper to build low-cost open-weight models at Meta’s Fundamental AI Research lab. Meta’s Llama project dropped in February 2023. Mistral’s cofounders quit their jobs soon after Llama dropped in February 2023.

Mistral released its first models later in 2023.