Mistral AI and PSG Equity Forge Global AI Partnership - InforCapital

Mistral AI, a prominent European developer of large language models, and growth equity firm PSG Equity today announced a strategic alliance designed to accelerate AI integration across PSG’s global software portfolio.

The partnership will focus on deploying verticalized LLMs and agentic AI tools into PSG’s approximately 160 software and technology-enabled services companies, spanning Europe, North America, and beyond. PSG will also join new investors in the latest Series C financing round for Mistral, further aligning capital and strategic interest.

For PSG, this collaboration advances a core goal: enabling meaningful AI transformation across its portfolio while preserving the autonomy and growth trajectory of its software holdings. For Mistral, it presents a unique path to expand its presence among mid-market technology firms and to accelerate commercial adoption in real-world verticals.

We are proud to partner with PSG. Together, we aim to accelerate the adoption of AI technologies and foster innovation across various sectors, said Marjorie Janiewicz, CRO of Mistral AI. The ability to combine Mistral’s models with PSG’s operational support and domain knowledge offers a compelling value proposition to mid‑market firms.

Dany Rammal, Managing Director and Head of Europe at PSG, commented: Mistral represents exactly the kind of transformational platform we seek: deep technical advantage, scalable market opportunity, and potential to drive meaningful change across our portfolio. He noted that this alignment underscores PSG’s ambition to lead in AI-enhanced software globally.

In parallel with the partnership, PSG will co-invest in Mistral’s Series C round, joining other prominent backers. This comes at a moment of strong momentum for Mistral: just weeks ago, the firm raised €1.7 billion, with chipmaker ASML investing €1.3 billion and becoming Mistral’s largest shareholder (holding 11 %). That round valued Mistral at around €11.7 billion, making it Europe’s highest‑valued private AI company. The ASML investment also launches a strategic collaboration to integrate AI across semiconductor tooling and infrastructure.

Over the last few years, Mistral has carved a reputation for pushing open‑weight models and industrial AI use cases. It was founded in 2023 by former researchers from DeepMind and Meta. Headquartered in Paris, it maintains global presence across the U.S., U.K., and Singapore. PSG Equity, founded in 2014 and operating from Boston, London, Paris, and Madrid, has backed more than 160 software companies and executed over 530 add-on acquisitions.

PSG itself is in strong capital position. Earlier in 2025, it closed two funds totaling $8 billion in commitments, reinforcing its ability to underwrite ambitious technology plays. Its Europe-focused vehicle, PSG Europe II, has closed at over €2.6 billion, making it one of the most active growth equity investors in European software.

Across global technology markets — in hubs such as Silicon Valley, London, Berlin, Bangalore and Tel Aviv — the adoption of generative AI, autonomous agents, and domain-specialized models is intensifying. This partnership positions Mistral and PSG to compete not only in European markets but to extend influence into North America and Asia, especially among middle-market firms seeking industrial AI adoption without depending solely on U.S. incumbents.

As the AI landscape evolves rapidly, strategic alliances like this one underscore how capital, technical depth, and vertical domain expertise must converge for real impact. In Madrid, Boston, Bangalore or Berlin, the same challenge faces software firms: how to embed AI safely, efficiently, and distinctively. With this alliance, Mistral and PSG aim to be among the partners shaping that next wave.