French AI lab Mistral AI has closed a €3 billion round, valuing the company at over €21 billion. The largest equity fundraising by a European tech firm, this round was led by Samsung, alongside EQT-managed Scaleup Europe Fund and PSG Equity. Mistral plans to use the funding to scale its compute capacity, build infrastructure, and expand its international footprint, addressing concerns about tech dependency on the United States.

With a push to build 1 GW of compute capacity in Europe by 2030, Mistral is positioning itself as a key player in the race for sovereign AI infrastructure. The company’s tools allow customers to choose processing regions, and it hosts third-party AI models, including Chinese ones, to maintain control and cater to diverse needs.

French President Emmanuel Macron hailed the round, reflecting France and South Korea’s ambition to build a third way in AI. The funding underscores Europe’s determination to compete with leading US labs, but also highlights the international nature of the tech ecosystem. Mistral continues to work with US players, such as Microsoft, through a strategic partnership.

The international backing, including from the Grand Duchy of Luxembourg, indicates Mistral’s appeal to customers seeking sovereignty in AI. As the debate around AI regulation intensifies, Mistral’s funding signals a strategic shift towards tech that is both European and global.