France-based AI startup Mistral AI is finalizing a 2 billion euro investment round, according to a Bloomberg report. The funding would value the company at 14 billion dollars, positioning it among Europe's most valuable tech startups. Founded just two years ago and competing with OpenAI, Mistral was established by former researchers from DeepMind and Meta. The company focuses on developing open-source language models and has launched Le Chat, an AI chatbot tailored for European users.
Mistral has not yet commented on the report. This would mark the company’s first major fundraising since June 2024, when its valuation stood at 5.8 billion euros. To date, Mistral has already raised over 1 billion euros from prominent investors, including Andreessen Horowitz and General Catalyst.
The potential investment comes at a time when European AI startups are experiencing exceptional growth momentum. According to Dealroom, European AI companies saw a 55% year-on-year increase in investment during the first quarter of 2025. In the first half of this year alone, 12 European startups achieved unicorn status. Among these is Sweden's Lovable, an AI coding platform that reached an 18 billion dollar valuation just eight months after its launch in July.
