French artificial intelligence start-up Mistral is seeking to raise $1 billion in a new funding round, aiming for a valuation of approximately $10 billion, according to individuals familiar with the negotiations. This would represent a sharp rise from its last valuation of €5.8 billion.
Founded in 2023 by three French engineers, Mistral has quickly emerged as Europe’s most prominent contender in the global AI race, positioning itself as a sovereign European alternative to dominant US and Chinese firms like OpenAI, Anthropic, and China’s DeepSeek.
Backed by Global Investors
The new round of funding is reportedly being discussed with major venture capital firms and Abu Dhabi’s MGX, an AI investment fund. If successful, the capital will be allocated to:
- Expanding the commercial rollout of Mistral’s chatbot, Le Chat.
- Further development of its large language models.
- Supporting plans to build a large AI data center outside Paris.
This infrastructure expansion could cost around €8.5 billion, with support from MGX, Nvidia, BPI France, and other stakeholders.
Rising Revenue and Big Clients
Recent reports suggest Mistral’s revenues have grown several times over since its previous round, and the company is projected to surpass $100 million in annual revenue if its current momentum continues.
The growth is driven largely by a small group of high-value clients. Several commercial contracts—each worth at least $100 million over 3 to 5 years—are either closed or in advanced negotiations. The company already serves major clients such as:
- French Defence Ministry
- BNP Paribas
- AXA
- CMA-CGM
Its investor base includes notable names like Nvidia, Lightspeed, General Catalyst, Xavier Niel, and BPI France.
Competing with Giants
Despite its impressive growth, Mistral still lags behind US giants like OpenAI, valued at around $300 billion, and Anthropic, which is in talks for funding at a $170 billion valuation.
Mistral’s strategy has centered around open-source AI models, positioning its technology as more customizable and efficient than proprietary offerings like ChatGPT or Google’s Gemini. However, this open-source direction puts it in direct competition with similar initiatives by Meta (LLaMA) and China’s DeepSeek.
A European Sovereign Tech Vision
French President Emmanuel Macron has vocally supported Mistral’s mission, framing it as key to Europe’s technological sovereignty in AI. The company’s push for independence from US and Chinese tech is resonating across Europe’s corporate and public sectors, reinforcing Mistral’s role in shaping a new European AI ecosystem.
