AsianFin -- ASML, the Dutch semiconductor equipment giant, is set to take a major stake in French artificial intelligence startup Mistral AI, underscoring Europe’s ambitions to strengthen its position in both chips and AI, people familiar with the matter told Reuters.

ASML plans to invest 1.3 billion euros ($1.5 billion) in Mistral’s ongoing 1.7 billion euro (~$2 billion) fundraising round, the sources said. The deal would give ASML a board seat at the French company and make it the startup’s largest shareholder.

The latest funding round values Mistral AI at around 10 billion euros ($11.7 billion) pre-money, making it Europe’s most valuable AI company to date.

Founded in 2023, Mistral AI has quickly emerged as a centerpiece of Europe’s push to develop homegrown AI capabilities and reduce reliance on U.S. heavyweights like OpenAI and Google. The company focuses on building open-source large language models and is often described as France’s answer to Silicon Valley’s AI leaders.