Paris-based Mistral AI has secured €3 billion ($3.5 billion) in fresh funding in a round led by Samsung, strengthening the startup’s push to compete with OpenAI and Anthropic.

The financing also included the Scaleup Europe Fund, backed by the European Commission and managed by EQT, and existing investor PSG Equity. The round values Mistral at more than €21 billion after the investment.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Mistral Expands From AI Models Into Infrastructure

Mistral CEO and co-founder Arthur Mensch said the new funding will support plans to build the company’s own data centers while continuing to lease computing capacity. Over the long term, Mistral aims to rely fully on infrastructure it owns, with its computing capacity expected to grow by around 100% over the next five years.

That expansion will support larger and faster AI models as Mistral expands its enterprise business. The company is also developing customized tools and integrations for corporate customers adopting AI across more workflows.

Samsung Partnership Expands Industrial Focus

Mistral is working with ASML on AI applications for manufacturing, while its partnership with Samsung could create further opportunities in the industrial sector. The company is also expanding its enterprise business as demand for customized AI systems grows.

Mensch said Mistral’s annual recurring revenue is expected to exceed $1 billion in 2025. He expects the company to beat that target if current growth continues, although Mistral has not provided a revised revenue forecast.

Mensch has also pointed to 2027 as an important period for the company’s expansion as it scales its infrastructure and enterprise operations.

European Sovereignty Shapes Mistral’s AI Strategy

Mistral has positioned itself as a European alternative to US and Chinese AI companies, with sovereignty and control over AI infrastructure central to its strategy. Its open-weight models are another part of that approach, giving customers greater control over how they deploy the technology.

The Scaleup Europe Fund is backed by the European Commission, Novo Holdings and Santander. Its participation gives Mistral additional support as European policymakers seek to strengthen the region’s AI capabilities.

Chinese Competition Raises The Stakes

Mensch said Mistral expects new Chinese AI models to become “very competitive,” increasing pressure on European and US developers. Chinese AI companies still face restrictions in some international markets, limiting their ability to expand outside China.

Mistral also hosts Chinese AI models on its infrastructure while keeping customer data within its own systems. Export restrictions and rapid advances by Chinese developers add uncertainty to the market, but Mistral plans to continue training and developing its own models.