EQT in talks to lead Mistral AI funding round

Swedish investment firm EQT is in talks to lead or co-lead French AI company Mistral AI's Series D funding round via the Scaleup Europe Fund, according to three sources with knowledge of the deal. If the transaction proceeds, it would mark the €5 billion fund's first investment, signaling significant backing for Mistral AI, which has rapidly emerged as a prominent European AI startup.

Mistral AI has previously secured substantial funding from investors including Andreessen Horowitz and Lightspeed Venture Partners. The company has released several models, such as Mistral 7B and Mixtral 8x7B, which have garnered attention for their performance and open-source nature. Its valuation has grown rapidly, reaching an estimated $2.1 billion in its last funding round.

Established in 2023, Mistral AI aims to develop open-source AI models that can compete with major players like OpenAI. The company's founders bring prior experience from AI teams at Google and Meta.

EQT's Scaleup Europe Fund is dedicated to supporting European growth companies in technology, healthcare, and sustainability. The fund typically invests in later-stage companies requiring capital for international expansion and market consolidation.