The French startup Mistral has raised 830 million dollars and it has done so with one objective: to create AI data centers in Europe that will be based on NVIDIA chips and technological solutions. That’s good news, but it also has a disturbing side.
Merci, Monsieur Trump. There is a geopolitical irony in the rise of Mistral. The French AI startup has become a reference in Europe, but it has done so not so much because of its models or technology (that too) but because of Donald Trump. Since the American president returned to power and began to destroy the era of globalization, the demand for “sovereign” European alternatives to the large US technology platforms has skyrocketed. Governments and companies that previously turned to Microsoft, Amazon or Google without thinking are now trying to look for options that free them from those dependencies. Mistral is precisely the clear alternative in terms of AI.
830 million to have its own infrastructure. The round that Mistral has raised is not venture capital, but debt financing granted mainly by French banks such as Bpifrance, BNP Paribas, HSBC and MUFG. It is an interesting aspect and shows that the company no longer needs to convince investors, but rather finance the infrastructure necessary to scale its business. Those $830 million are destined for its future European data centers, starting with its facilities in Bruyères-le-Châtel, near Paris. Said center will house 13,800 GB300 chips from NVIDIA and will begin operating before the end of June.
Debt, not equity. There is an important difference between the venture capital rounds that have financed Mistral until now and this new round of debt. Venture capital is not returned: investors bet on a stake in the company and get paid if the company grows and is sold or goes public. The debt is repaid, and it is with interest, regardless of how the business is going. That Mistral has opted for this mechanism suggests that it is optimistic about the future, but it also represents added pressure for the company, which will not be able to afford consecutive quarters of losses. Betting with other people’s money has its problems, but doing so with borrowed money also has important problems.
The success of the 13,800 chips. May that French data center get 13,800 GB300 chipsthe most advanced from NVIDIA, is not a minor detail. These AI accelerators are on the waiting list of many companies, and here Mistral competes with hyperscalers like Microsoft, Google or xAI that buy tens of thousands of units and have priority agreements. That this European startup has managed to secure that amount seems to demonstrate that it has negotiating capacity or a special relationship with NVIDIA and its CEO, Jensen Huang.
European AI ecosystem. Mistral is little by little becoming the perfect European ecosystem for companies that want not to be exposed to dependencies on North American partners. Having everything under European control is what more and more governments are looking for in Europe, and here we are facing an effort that wants to offer that certain independence… which of course is anything but complete. Be that as it may, Mistral has become the great European seller of sovereignty as a product.
But. Mistral expects to achieve 200 MW of computing capacity by the end of 2027, including a €1.2 billion facility in Sweden with 23 MW that will begin operating next year. These are decent numbers in a European Union that has barely raised its head in this segment, but they are very far from those in China and especially the United States. OpenAI and its partners have agreements worth several hundreds of billions of dollars in infrastructure, and while here we move in megawatt capacities, there we talk about gigawatts. The distance is still enormous.
And the dependency still exists. The paradox that no one seems to want to allude to is important: the European “sovereign” infrastructure that Mistral is building depends entirely on chips designed by an American company and manufactured in Taiwan. If for any reason Washington decides to make Europe a banned region for its technology and prohibits the export of GB300 chips, Mistral’s expansion would be paralyzed. The quest for digital sovereignty is interesting, but the reality is that Europe will continue to depend on US technology and Taiwan’s manufacturing capacity to an even greater extent than the US o China depend on its rival. The old continent has activated some measures for mitigate the problembut that will not prevent it from continuing to exist in the long term.
Paris, European capital of AI. The French startup has turned France into one of the great European references in AI. Mistral was valued at $12 billion after raising $1.7 billion in financing led by ASML. In addition, they expect to exceed 1,000 million in annual recurring revenue. This company is now joined by the recently launched startup Yann LeCun: Advanced Machine Intelligence Labs (AMI Labs) has already managed to raise more than 1 billion dollars and will also be based in Paris. Another detail should be highlighted: Bpifrance, the French public investment bank, is leading the round. That is significant, because that means that the one supporting this initiative is the French state.
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