Mistral CEO: Europe has 2 years to avoid becoming US AI 'vassal state'

Arthur Mensch, the CEO of the French AI startup Mistral, warned that Europe has just two years to create its own AI framework, or it risks becoming too dependent on American tech companies. Speaking at a digital sovereignty and AI hearing in France's National Assembly on Tuesday, he pointed out that AI leadership relies heavily on controlling chips, energy, and computing resources. Without a strong AI sector, Mensch believes Europe could end up as a 'vassal state' to US digital services. Founded in 2023 by former researchers from Meta and DeepMind, Mistral is valued at around $13.6 billion. Mensch criticized Europe's fragmented regulations and funding landscape, which stifle startup growth compared to the US. He mentioned that US firms are set to invest a trillion dollars next year, highlighting the urgency for Europe to ramp up its efforts. Mistral aims for a gigawatt of AI computing capacity by 2029, but Mensch insists Europe needs much more infrastructure investment. The startup has partnered with Groupe Caisse des Dépôts to bolster Europe's 'digital sovereignty' through generative AI and GPU computing infrastructure.