Mistral AI seeks MGX funding in $1 billion round - report
MGX is already partnering with Mistral for Paris AI Campus project
#France #funding - Mistral AI is in discussions to raise up to $1 billion in equity from investors including Abu Dhabi sovereign wealth fund MGX, according to a report from Bloomberg. The Paris-based generative AI company is also talking to French lenders including Bpifrance SACA to raise hundreds of millions of euros in debt financing. An MGX participation in Mistral’s new funding round could further strengthen technology collaboration between France and the UAE. The two countries have announced several partnerships this year including a plan to crreate Europe’s largest AI campus: a project funded by MGX and Bpifrance, and with the involvement from Mistral AI.
SO WHAT? - In February, France and the United Arab Emirates signed a landmark agreement to build a 1 Gigawatt of AI data centre capacity in France, with a total investment of € 30 billion to € 50 billion. Part of a UAE-France Framework for Cooperation in Artificial Intelligence, agreed by President Emmanuel Macron and UAE President Sheikh Mohamed bin Zayed Al Nahyan, the deal was followed by a number of other technology and tech investment announcements on the sidelines of the Choose France Summit held in May. Investment by MGX in Mistral AI would be consistent with the cooperation framework and also aligns with Abu Dhabi-based G42’s collaboration plans with the French AI firm.
Here are some key details about this story:
Bloomberg reported this week that Mistral AI is in discussions to raise up to $1 billion in equity from investors including Abu Dhabi sovereign wealth fund MGX,
Mistral AI has already raised over €1 billion since its 2023 founding and achieved a €5.8 billion valuation, establishing itself as Europe's largest AI startup despite trailing US competitors like OpenAI.
Earlier this year, the UAE committed to invest €30-50 billion on AI projects in France as part of the bilateral Framework for Cooperation in Artificial Intelligence signed in February 2025.
Mistral and MGX, are already collaborating together with NVIDIA to build Europe's largest AI campus with 1.4 GW compute capacity in the Paris region, with construction beginning in 2026 and operations expected by 2028.
The Franco-UAE AI partnership encompasses €30-50 billion in planned infrastructure investment, including sovereign cloud infrastructure, Virtual Data Embassies, and advanced chip acquisition capabilities.
Over the past year, MGX has established itself as a prolific AI investor with stakes in OpenAI, xAI, and participation in OpenAI's Stargate project alongside a mega-fund partnership with NVIDIA and Microsoft.
Meanwhile, Mistral announced a strategic partnership with G42 in May to co-develop next-generation AI platforms, combining operational scale with frontier research capabilities.
Mistral's existing investors include Microsoft, Lightspeed Venture Partners, General Catalyst, and Andreessen Horowitz, demonstrating strong US venture capital backing alongside European support.
ZOOM OUT - The UAE–France Framework for Cooperation in Artificial Intelligence, was signed in February 2025 under the direction of Presidents Emmanuel Macron and Sheikh Mohamed bin Zayed Al Nahyan. The agreement outlines a shared vision to invest €30–50 billion in AI infrastructure, research, and talent. It also includes plans for sovereign cloud infrastructure, Virtual Data Embassies, and advanced chip acquisition. The MGX-led Paris AI Campus is central to the bilateral alliance, positioning France as a leading European AI hub and reinforcing the UAE’s global AI ambitions through long-term investment and cooperation.
[Written and edited with the assistance of AI]
Read more about UAE-France investment and tech collaboration:
G42 & Mistral AI announce strategic partnership (Middle East AI News)
MGX & Bpifrance back 1.4GW Paris AI Campus project (Middle East AI News)
G42 & AMD to power AI data centre innovation in France (Middle East AI News)
France, UAE deal to build 1 Gigawatt AI data centre (Middle East AI News)