French AI Startup Mistral Nears $14B Valuation in Funding Round

French AI startup Mistral AI is nearing the completion of a €2 billion funding round that would value the company at approximately $14 billion, marking it as one of Europe's most valuable tech startups. Founded in 2023 by former DeepMind and Meta researchers, Mistral distinguishes itself by developing open-source language models and a chatbot called Le Chat tailored for European users. This rapid valuation surge reflects intense investor confidence and positions Mistral as a significant rival to OpenAI. The funding round, involving notable investors such as Andreessen Horowitz and General Catalyst, follows a previous valuation of €5.8 billion in June 2024. This growth coincides with a broader 55% increase in European AI startup funding and multiple new unicorns in 2025, signaling a robust and rapidly evolving AI ecosystem in Europe. Mistral’s emphasis on accessibility and efficiency, along with its open-source approach, appeals to enterprises seeking to avoid vendor lock-in, bolstering its role in shaping the future of AI on the continent.