UPDATE: ASML Holding has officially announced a strategic partnership with a France-based AI leader, Mistral AI, based on a long-term collaboration agreement to explore the use of AI models across it’s product portfolio as well as research, development and operations.

As a part of the agreement, ASML is investing €1.3B in Mistral AI’s Series C funding round as lead investor, in order to support its development and reinforce the long-term partnership benefits. This results in ASML holding an approximately 11 per cent share on a fully diluted basis in Mistral AI.

Veldhoven-based ASML Holding, a manufacturer of chip-making equipment, is set to invest €1.3B in the Paris-based AI company Mistral, becoming a top shareholder. 

This announcement follows reports that the French company has reportedly completing €2B funding round, at a valuation of $14B.

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With this investment, ASML aims to strengthen European tech sovereignty, reports Reuters. 

As part of the funding round, ASML is expected to secure a board seat at Mistral, according to Reuters. Bank of America is said to have advised ASML on its investment in Mistral, adds the report.

Investing in Mistral would bring together two European tech leaders, and ASML’s funding could help Mistral reduce Europe’s reliance on U.S. and Chinese AI models, according to a report.

Additionally, the company could enhance its tools and create new products by implementing Mistral’s data analytics and AI capabilities.

A couple of months back, ASML reported a total net sales of €7.7B, a gross margin of 53.7 per cent, and a net income of €2.3B in Q2.

ASML is the provider of lithography systems for the semiconductor industry, manufacturing complex machines that are critical to the production of integrated circuits or chips. 

ASML provides chipmakers with hardware, software, and mass services to produce the patterns of integrated circuits (microchips). 

Headquartered in Veldhoven, the Netherlands, ASML has offices across Europe, the US, and Asia. 

Mistral AI: Competing against OpenAI

Founded by Timothée Lacroix, Guillaume Lample, and Arthur Mensch, Mistral AI specialises in generative artificial intelligence.

Mistral AI is a platform that assembles teams to develop generative AI models. 

The French company specialises in open-source software for chatbots and generative AI tools. 

Its founders have experience working on large language models similar to those developed by OpenAI.

So far, the company is backed by various investors, including DST Global, General Catalyst, Databricks, Microsoft, ASML and others.