Mistral AI Looking for up to $1 Billion Equity Funding

Mistral AI engaged in conversations with Abu Dhabi-based investment company MGX and other investors to raise $1 billion in equity. AI start-up is in talks for hundreds of millions of euros in debt from France-based lenders, including Bpifrance SACA, which is a previous investor in Mistral AI.

The discussions are in a preliminary stage and are subject to change. Mistral AI is key to French President Emmanuel Macron’s plan for AI sovereignty across Europe, in the face of competition from US-based companies, including OpenAI, Google, and Microsoft. In February, Macron pledged €109 billion for local AI infrastructure to better compete against US and China-based AI companies.

Mistral AI, MGX, and Nvidia also plan to build Europe’s largest AI data center in France. UAE President Sheikh Mohamed bin Zayed Al Nahyan visited France in February and committed to investing up to €50 billion in French data centers. In 2024, Mistral AI secured €600 million led by tech-focused investment company General Catalyst, with its valuation increasing to almost €6 billion.