French AI Startup Mistral Eyes $1B Raise with MGX, Nvidia Data Center Partnership

Paris-based Mistral AI is in advanced talks to secure up to $1 billion in equity funding, with Abu Dhabi's sovereign wealth fund MGX emerging as a key investor. The generative AI specialist, valued at €5.8 billion in its last round, is simultaneously negotiating hundreds of millions in debt financing from French institutions including state-backed Bpifrance.

The funding push coincides with a strategic collaboration between Mistral, MGX, and Nvidia to establish a pan-European AI data center. The facility aims to bolster regional AI sovereignty by reducing dependency on U.S. cloud infrastructure, aligning with both France's AI ambitions and the UAE's National AI Strategy 2031.

France's positioning as Europe's AI hub gains momentum as Mistral's open-weight models attract global investor interest. The startup has raised $1.2 billion since its 2023 founding, reflecting heightened competition in foundational AI model development.