French AI Startup Mistral in Talks to Raise $1B at $10B Valuation with MGX and VC Firms

Mistral, a French AI startup, is in talks with investors and Abu Dhabi's MGX to raise $1 billion at a $10 billion valuation. The funding will accelerate the rollout of its Le Chat chatbot and support large language model development. Mistral raised $600 million in a Series B funding round last year, valuing the company at $5.8 billion.

French AI startup Mistral is reportedly in discussions with investors, including Abu Dhabi's MGX, to raise $1 billion at a $10 billion valuation [1]. The funding round, if successful, would significantly boost the company's commercial growth and AI development.

Mistral's ambitions are evident in its previous funding round, where it raised 600 million euros in a Series B round last year, valuing the company at 5.8 billion euros [2]. The current talks, if successful, would nearly double the company's valuation [1].

The potential influx of capital is expected to serve two primary purposes: accelerating the commercial rollout of Mistral's Le Chat chatbot and supporting the continued development of its large language models [1]. This move comes on the heels of Mistral's launch of Europe's first AI reasoning model in June, which utilizes logical thinking to generate responses [1].

Industry observers consider Mistral as Europe's best-positioned AI company to rival Silicon Valley leaders, though the French firm has yet to achieve comparable market traction or revenue scale [1]. Notable investors in Mistral include Nvidia, Andreessen Horowitz, and Lightspeed Venture Partners [1].

As of now, both MGX and Mistral have not responded to requests for comment on the reported funding talks [1]. The outcome of these discussions could significantly impact Mistral's trajectory in the competitive AI landscape, potentially positioning it as a major player on the global stage [1].

References:
[1] https://theoutpost.ai/news-story/mistral-ai-in-talks-to-raise-1-billion-at-10-billion-valuation-18569/
[2] https://www.reuters.com/technology/mistral-talks-with-vc-firms-mgx-raise-funds-10-billion-valuation-ft-reports-2025-08-01/