Mistral Seeks $1B Funding at $10B Valuation to Challenge US and Chinese AI Dominance

French AI startup Mistral is positioning itself as Europe's flagship competitor to deep-pocketed US and Chinese firms with a planned $1 billion raise. The funding round WOULD value the company at $10 billion—a dramatic leap from its previous €5.8 billion valuation in June 2024.

Proceeds will fuel infrastructure scaling and commercial deployment of Mistral's modular large language models, which are designed for enterprise customization. The company has already secured high-profile clients including BNP Paribas and shipping giant CMA CGM, with annual revenue on track to surpass $100 million.

Abu Dhabi's MGX AI fund joins existing backers like Lightspeed Venture Partners in the round, reflecting growing geopolitical interest in sovereign AI capabilities. French President Emmanuel Macron has publicly championed Mistral as Europe's answer to OpenAI and Google.