Samsung Electronics is in talks to acquire a stake in French artificial intelligence company Mistral, a move that would bring the world’s leading memory-chip manufacturer closer to one of Europe’s most prominent AI companies. The Financial Times first reported the negotiations on July 21, and Axios and Yahoo Finance reported related details the following day.

The potential investment reflects a broader shift in the AI market, where chipmakers are not only supplying hardware but also investing directly in AI companies. Earlier this week, the Financial Times reported that AMD was prepared to invest nearly $5 billion in Anthropic, underscoring how hardware producers are building new ties with AI developers through capital commitments and commercial partnerships. For AI developers, those relationships can matter because training and running large models depends on access to advanced accelerators, high-bandwidth memory and data-center capacity that remain concentrated among a small group of suppliers.

A €1 billion investment tied to chip access

Reports indicate that Samsung is considering an investment of roughly €1 billion, or about $1.09 billion. The deal would value Mistral at approximately €20 billion, almost double the company’s previous valuation of €11.7 billion. Reports also said EQT’s Scaleup Europe Fund is exploring participation in the matter.

If completed, the funding round would combine Samsung’s corporate backing with European institutional capital, strengthening Mistral’s position as one of the leading AI companies on the continent. TradingKey reported that Samsung could gain a seat on Mistral’s board of directors and preinstall Mistral’s AI models on Samsung AI chips, potentially creating a deeper partnership that extends beyond a financial investment.

Why Samsung wants a major AI customer

For Samsung, the strategic rationale is centered on securing a long-term customer for its most advanced chips. Samsung is among the limited number of companies able to produce high-bandwidth memory, or HBM, and high-end logic chips, putting it in a key position as demand for AI hardware continues to grow. HBM is especially important for AI systems because it allows processors to move large volumes of data quickly, a core requirement for training and serving large language models. TradingKey noted that demand for these chips remains higher than available supply, making reliable customers increasingly important.

Mistral would also benefit from a more dependable supply of chips needed to train and operate increasingly capable AI models. According to Financial Times journalists Ivan Levingston and Tim Bradshaw, the talks are taking place during a global shortage of advanced chips, as manufacturers race to increase production capacity.

The potential partnership comes during a difficult period for Samsung. TradingKey reported that the company’s shares had fallen by almost 24% over the previous month as investors raised concerns about the trajectory of AI-related spending. Even so, Samsung’s share price closed 0.58% higher in Seoul on the day news of the talks emerged.

Europe seeks more control over its AI infrastructure

Mistral was founded in Paris in 2023 and has become one of Europe’s best-known AI start-ups. The company is recognized for advanced open-source large language models that customers can download and use independently. Its profile has made it a frequent reference point in Europe’s effort to develop competitive AI capabilities outside the dominant U.S. technology ecosystem.

That approach has become more significant as companies across Europe reassess their reliance on U.S. AI technology providers. After restrictions imposed by the Trump administration last month limited access to Anthropic’s Mythos and Fable technologies, companies began to examine domestic alternatives more closely. A European technology investor told the Financial Times that such limits had increased skepticism about dependence on foreign-based AI technology.

Reuters described the broader trend in similar terms: “There is a growing interest in Europe and elsewhere to reduce dependence on U.S. technology so other countries may have greater say in their future society and economy.”

According to TradingKey, any Samsung investment would still require approval from European regulators. Neither Samsung nor Mistral has publicly commented on the reported negotiations. Regulatory review would be a key step because the transaction would involve a major non-European semiconductor company taking a larger position in a strategically important European AI developer.

Talks followed earlier meetings in South Korea

The discussions build on an existing relationship between the two companies. In April, Mistral chief executive Arthur Mensch met Jeon Young-hyun, head of Samsung Device Solutions, at Samsung’s semiconductor plant in Hwaseong to discuss AI chip supply chains. The meeting came shortly after French President Emmanuel Macron visited South Korea for talks with President Lee Jae Myung.

Mensch previously said Mistral is on track to exceed $1 billion in annual recurring revenue, or ARR, by the end of 2026, citing rapid enterprise adoption. Axios reported that the fundraising discussions are taking place as Chinese AI developers, especially Moonshot AI with its Kimi K3 model, increase pressure on both U.S. and European AI companies.

Samsung had already backed Mistral through its venture capital division. A proposed €1 billion investment would significantly expand cooperation between the companies as competition in the global AI sector continues to intensify.