Samsung Electronics is in discussions to invest in Mistral, a French artificial intelligence (AI) startup often referred to as the "European OpenAI," according to a report by the Financial Times on July 22, citing sources. If the investment materializes, Mistral is expected to strengthen its position as a viable alternative to major U.S. AI tech companies.
Reports indicate that Samsung is considering participating in Mistral's upcoming funding round. One source mentioned that Samsung could invest around €1 billion (approximately 1.7 trillion won) in this round. Upon completion of the funding round, Mistral's valuation is projected to reach about €20 billion (approximately 33.8 trillion won).
According to the Financial Times, Samsung has already invested in Mistral through its venture capital division, and the two companies discussed collaboration opportunities during French President Emmanuel Macron's visit to South Korea in April.
Founded three years ago, Mistral is currently the highest-valued AI startup in Europe. CEO Arthur Mench has stated that the company expects to surpass $1 billion in annual recurring revenue (ARR) by the end of this year. Mistral aims to leverage its strengths to attract European and Asian companies and governments seeking alternatives to U.S. AI models.
Demand for such alternatives has surged, especially after the Trump administration restricted access to the latest AI models, "Mitos" and "Fable," for overseas users. Additionally, as China tightens control over its own AI models, Mistral has become increasingly appealing to clients looking for AI solutions outside the U.S. and China.
However, the Financial Times notes that Mistral faces stiff competition from recently launched Chinese AI models, including Kimi.
This funding round comes less than a year after Mistral raised €1.7 billion in an investment led by Dutch semiconductor equipment maker ASML, which valued the company at €12 billion. The European Commission is reportedly supporting this investment, and discussions are ongoing with the ScaleUp Europe Fund managed by Swedish asset management firm EQT. Sources indicate that negotiations are still in progress, and investment terms may change, with no final decision made yet.
Furthermore, the negotiations reflect a broader trend in the AI industry to strengthen collaborations with semiconductor suppliers. As demand for computing power in the AI sector surges, competition for securing computing resources, including semiconductors, is intensifying, leading to increased partnerships between AI companies and semiconductor firms.
In fact, just the day before, Mistral announced an expansion of its collaboration with Microsoft, one of its early investors, and last month, Anthropic announced a partnership with U.S. memory company Micron, which includes long-term memory and storage supply agreements.
* This article has been translated by AI.
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