Mistral AI Raises €1.7B, Becomes France’s First Decacorn in Challenge to US AI Dominance

Paris-based Mistral AI has vaulted into the big leagues with a record €1.7 billion Series C funding round, achieving an €11.7 billion valuation and decacorn status. The two-year-old startup, founded by ex-Meta and DeepMind researchers, represents Europe's most credible challenger to American AI hegemony.

ASML's €1.3 billion investment secures an 11% stake and board seat, while blue-chip clients including Orange, BNP Paribas, and Stellantis validate Mistral's open-source approach to generative AI. The funding marks a 95% valuation jump since June 2024, when Mistral was priced at $6 billion.

European policymakers are rallying behind Mistral as their standard-bearer against OpenAI and Anthropic. Yet the path remains fraught - the startup must navigate technological hurdles and competitive pressures while justifying its soaring valuation in an increasingly crowded AI landscape.