Mistral AI Raises €2 Billion at $14 Billion Valuation – Europe’s Fastest-Growing AI Startup

A French artificial intelligence (AI) firm, Mistral AI, is reportedly closing a €2 billion investment round at a post-money valuation of $14 billion, making it one of Europe’s most valuable tech startups. The two-year-old company, which competes with OpenAI and was founded by ex-DeepMind and Meta researchers, specializes in developing open-source language models and AI chatbots tailored for European audiences, specifically Le Chat.

While Mistral AI has yet to comment on the matter, the investment would mark the company’s first significant fundraising since June 2024, when it was valued at €5.8 billion. Notable investors such as Andreessen Horowitz and General Catalyst have already poured over €1 billion into the company.

The investment is a testament to the growing momentum of European AI startups. According to Dealroom, European AI companies received 55% more year-on-year investment in Q1 2025 compared to the previous year, with twelve European startups achieving unicorn status during the first half of the year. Another rising star in this surge is Lovable, a Swedish AI coding platform that achieved a $1.8 billion valuation in July, less than eight months after its launch.