French startup Mistral AI is on the verge of securing a €2 billion investment, propelling its post-money valuation to $14 billion, as reported by Bloomberg. With a team of former DeepMind and Meta experts, the two-year-old company focuses on developing open source language models and Le Chat, an AI chatbot tailored for European users.
Mistral has remained tight-lipped about the funding news, marking its first significant raise since June 2024 when it was valued at €5.8 billion. Noteworthy investors such as Andreessen Horowitz and General Catalyst have previously contributed over €1 billion to Mistral’s growth.
The influx of investment in Mistral mirrors the growing momentum of AI startups in Europe. Dealroom data shows a 55% increase in year-on-year funding for European AI companies in Q1 2025, with a dozen startups achieving unicorn status in the first half of the year. Lovable, a Swedish AI coding platform, is another standout, reaching a $1.8 billion valuation within eight months of its launch.
