Samsung Electronics Chairman Lee Jae-yong (center) attends the Allen & Company Sun Valley Conference, an annual technology and business gathering, at Sun Valley Lodge in Idaho on July 9. Samsung is in discussions to invest up to 1 billion euros ($1.14 billion) in French AI startup Mistral. [Getty Images]
Samsung Electronics Chairman Lee Jae-yong (center) attends the Allen & Company Sun Valley Conference, an annual technology and business gathering, at Sun Valley Lodge in Idaho on July 9. Samsung is in discussions to invest up to 1 billion euros ($1.14 billion) in French AI startup Mistral. [Getty Images]

Samsung is in discussions to invest up to 1 billion euros ($1.14 billion) in French AI startup Mistral, according to reports.

According to the Financial Times, Samsung is in talks to take an equity stake in Mistral, which is currently raising funds and is valued at around 20 billion euros in the current round. Samsung is considering contributing about 1 billion euros to that round.

Samsung has previously invested in Mistral through its venture arm.

The Financial Times said the move would be a significant boost for Mistral, as it would secure a partnership with a major semiconductor supplier at a time when the AI industry is grappling with surging demand that far outstrips available computing power. Demand for memory chips and other semiconductors needed to run and train AI systems has spiked sharply, leaving the industry facing an unprecedented chip crunch. AI companies and chipmakers have increasingly sought partnerships to shore up their supply chains. Last month, US memory chip manufacturer Micron signed a broad partnership with Anthropic that includes a long-term supply agreement for memory and storage chips.

Mistral, a three-year-old startup, has emerged as Europe's leading challenger amid the intensifying AI rivalry between the United States and China. The company raised funds last year at a valuation of 12 billion euros, with ASML contributing around 1.7 billion euros to that round. Its annualized recurring revenue is expected to surpass $1 billion by the end of this year.

Beyond Samsung, Swedish investor EQT's Scaleup Europe fund is also considering committing more than 5 billion euros to the current round. European financial institutions including Novo Holdings and Santander are also weighing participation.

Mistral has also expanded its partnership with Microsoft, one of its early investors, to secure computing infrastructure. The startup's latest models will be available through Microsoft's Azure cloud computing service.


kate01@heraldcorp.com