French AI company Mistral announced on Tuesday that it has raised €3 billion ($3.5 billion) in new funding, with Samsung leading the round. The investment strengthens Mistral’s position as a European alternative to major AI companies such as OpenAI and Anthropic.
The funding round also included the Scaleup Europe Fund, backed by the European Union and managed by EQT, along with existing investor PSG Equity. Mistral said the latest investment values the company at more than €21 billion after the funding.
That represents a significant increase from the €11.7 billion valuation it reached a year ago following an investment round led by Dutch semiconductor equipment manufacturer ASML.
Focus on computing infrastructure
Mistral CEO Arthur Mensch said the new capital will be used to expand the company’s computing infrastructure. This includes developing its own data centres while continuing to rent computing capacity from external providers.
Mensch said Mistral intends to significantly increase the amount of computing capacity it owns over the next five years, allowing the company to train larger and faster AI models.
Headquartered in Paris, Mistral develops artificial intelligence models while expanding its own data-centre network. Unlike companies focused primarily on general-purpose AI products, Mistral is also targeting businesses with customised AI systems designed to fit specific operations and workflows.
The company already works with ASML to integrate AI into manufacturing and is expected to pursue similar opportunities with Samsung.
Revenue growth and European AI ambitions
Mensch previously projected that Mistral’s annual recurring revenue could surpass $1 billion this year. He now expects the company to exceed that target if its current growth trajectory continues, although he did not provide an updated revenue forecast.
Mistral is also positioning itself as a European alternative to U.S. and Chinese AI companies, tapping into growing interest in “sovereign AI” — technology developed and controlled within a particular region.
The company has additionally focused on open-weight AI models, contrasting with the more closed systems used by companies such as OpenAI and Anthropic.
However, Mistral faces growing competition from advanced Chinese AI developers. Mensch said upcoming Mistral models are expected to be highly competitive, while also arguing that European businesses may face uncertainty when depending on Chinese AI models because of questions surrounding long-term updates and potential export restrictions.
He said the AI industry remains highly volatile, making long-term planning particularly challenging for businesses operating in the sector.