ASML invests $1.5 billion in Mistral

The deal will see ASML become the top shareholder of Mistral

Dutch chip-gear maker ASML’s $1.5 billion investment in French artificial intelligence firm Mistral has given a shot in the arm to Europe’s AI ambitions and hopes for more regional tech sovereignty against the U.S. and Asian rivals.

The deal will see ASML become the top shareholder of Mistral, often presented as Europe’s AI champion in a sector in which U.S. companies such as OpenAI and Alphabet’s Google have strong presence.

The move, which gives ASML an 11% stake in the firm that has received big U.S. funding, drew cheers from around Europe, where the global trade conflict with U.S. President Donald Trump has shone a spotlight on weaknesses in European tech and AI.

ASML’s stake in Mistral AI is a game-changer for Europe, EU lawmaker Stephanie Yon-Courtin, who is involved in regional tech issues, told Reuters, adding it paired the region’s best semiconductor expertise with cutting-edge AI.

It strengthens our digital sovereignty, boosts innovation, and sends a clear signal to global Big Tech: Europe is ready to lead, not follow, Yon-Courtin said.

Europe’s tech lag has spooked political and industry leaders. It has no real rivals to U.S. behemoths such as Meta, Nvidia, Microsoft or OpenAI, which have high valuations.

Mistral, backed by U.S. funds such as DST Global, Andreessen Horowitz and General Catalyst, is valued at just under $12 billion in its latest fundraising.

European leaders from French President Emmanuel Macron to German Chancellor Friedrich Merz have been calling for digital sovereignty of Europe, as they are increasingly wary of the continent’s dependency on U.S. tech companies, and after drawing ire from the U.S. President Donald Trump over issues from trade to defence.