PSG Equity co-leads record €3bn Mistral funding round at €21bn valuation
PSG Equity has co-led a €3bn ($3.5bn) funding round for French artificial intelligence company Mistral, valuing the three-year-old business at approximately €21bn ($24bn), according to a report by Reuters.
PSG Equity and two other investors co-led a massive €3bn funding round for French AI startup Mistral, valuing the company at around €21bn. The investment, announced by Reuters, is a significant follow-on commitment from PSG Equity, which joined forces with Samsung Electronics and the EU-backed Scaleup Europe Fund in the round.
This is the largest equity financing ever for a privately held European technology company, according to Mistral, and makes the AI developer the second most valuable private tech business in Europe. PSG Equity's involvement shows their continued support as Mistral aims to become a major player in the fast-growing AI market. The new capital will be used to further develop Mistral's AI models and frontier research, as the company seeks to compete with larger US rivals despite being valued far below them.
Mistral's customer base is diversifying geographically, with strong growth in Asia and North America. The firm currently has over 125 customers and aims to achieve $1bn in annual recurring revenue by the end of 2026. Mistral offers open AI models that customers can download and customize on their own servers. It has secured a major commercial relationship with Microsoft for computing infrastructure to support its European expansion, although Microsoft did not participate in this latest round of funding.
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