French artificial-intelligence company Mistral has raised €3 billion in new funding, lifting its valuation to about €21 billion, or approximately $24 billion.

The financing is reported to be the largest equity round completed by a privately owned European technology company. PSG Equity led the round, with participation from Samsung Electronics and the EU-backed Scaleup Europe Fund.

Founded only three years ago, Mistral has emerged as one of Europe’s most prominent challengers to larger American AI developers. The company plans to use the capital for model development and frontier research.

The investment also carries strategic importance for European governments seeking greater technological sovereignty. Policymakers have expressed concern that dependence on foreign AI systems could create economic and security vulnerabilities.

Mistral’s customer base has expanded in Asia and North America, and the company expects annual recurring revenue to reach $1 billion by the end of the year. Management has said an initial public offering remains a future option rather than an immediate plan.

The large valuation will increase expectations for commercial growth and technical performance. It also highlights investors’ willingness to commit substantial capital to European AI despite intense competition and high infrastructure costs.

Source

Reuters

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