In this episode of the Deep Dive, we explore a significant development in the European tech scene: the remarkable funding round secured by the French startup, Mistral AI. With an astonishing $1.7 billion raised, Mistral AI is now valued at $11.7 billion, making it France's first AI decacorn. But what does this mean for European digital sovereignty, and how might this reshape the continent's position in the global AI race? These are the questions we delve into as we unpack the implications of this record-breaking investment.

Our guest today is Mistral AI, a company founded in June 2023 by three former Meta researchers: Arthur Mensch, Guillaume Lample, and Timothée Lacroix. Despite its recent inception, Mistral AI has rapidly gained recognition for its technical prowess. Their products, such as the chatbot Le Chat, are already considered serious competitors to OpenAI's offerings. A key factor in their appeal is their commitment to open weights, which provides transparency and avoids vendor lock-in, offering strategic autonomy that resonates with European businesses and governments.

The episode examines the strategic partnership between Mistral AI and ASML, the Dutch tech giant that contributed $1.3 billion to the funding round, becoming a major shareholder. This collaboration is seen as a move towards building European digital sovereignty by reducing reliance on non-European providers. However, despite Mistral AI's impressive valuation, it still faces significant challenges compared to US giants like OpenAI and Anthropic. The episode concludes by pondering whether these strategic alliances can truly forge a sovereign path in the global AI landscape or if the financial and infrastructural disparities are simply too vast to bridge.

0:00:00 - Introduction and context

0:00:25 - Record €1.7 billion funding round

0:00:52 - First French AI decacorn

0:01:63 - Deal structure and ASML’s role

0:01:97 - Seat on ASML’s board of directors

0:02:62 - Initial passion and Europe’s digital sovereignty strategy

0:03:177 - Mistral’s technical strengths and open-source models

0:04:214 - Mistral versus global competition

0:04:297 - Maintaining strategic autonomy

0:05:333 - Conclusion and Europe’s strategic stakes

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