Mistral AI seeks €3 billion at a €20 billion valuation to compete with US rivals

French artificial intelligence startup Mistral AI is in talks to raise about €3 billion at a valuation of roughly €20 billion, according to Bloomberg, in a deal that would nearly double the company’s price tag from its last funding round. The discussions are still early, and the terms could change, sources familiar with the talks told the news outlet.

If completed, the round would give Mistral a major cash infusion as it competes in the expensive race to build and run advanced AI systems. Bloomberg reported that the company is facing heavy capital demands as it tries to keep pace with rivals in the United States and China.

The Paris-based startup was last valued at €11.7 billion when it raised money in September, Bloomberg said. A jump to around €20 billion would underline continued investor enthusiasm for European AI companies, especially those seen as potential challengers to larger American and Chinese players.