Samsung Electronics is teaming up with French AI startup Mistral AI to build customized artificial intelligence models for chip design and manufacturing, deepening a relationship backed by Samsung’s investment in the European AI heavyweight.

The strategic partnership will focus on deploying AI across Samsung’s semiconductor operations, including chip design, process optimization and engineering workflows.

Samsung plans to integrate Mistral AI’s language models into its chip business and tailor them to run on the Korean company’s own infrastructure.

On-premises AI is gaining importance in the semiconductor industry, where companies must tightly control sensitive design data, manufacturing processes and proprietary technologies.

As chip development becomes more complex and factories generate ever-larger volumes of data, AI-powered analysis and automation are emerging as critical tools for improving productivity and competitiveness. Samsung aims to apply customized models across its operations, from research and engineering to design and production.

Founded in France in 2023, Mistral AI has rapidly emerged as one of Europe’s leading AI companies. It develops open-weight models that businesses can deploy and customize within their own computing environments.

The startup has made “sovereign AI” a central part of its strategy, allowing customers to retain control over their data, models and infrastructure. It supports AI transformation at more than 125 global companies, including Airbus, ASML and HSBC, and operates in 20 countries.

“The increasing complexity involved in AI chip design and manufacturing requires continuous innovation in semiconductor technologies,” said Jun Young-hyun, vice chair and head of Samsung Electronics’ Device Solutions division.

“We look forward to working with Mistral and supporting the evolving needs of customers, while delivering new breakthroughs across the semiconductor ecosystem essential to the AI era.”

The agreement follows Samsung’s participation as a lead investor in Mistral AI’s latest Series D funding round, further strengthening ties between the two companies.

Mistral AI raised 3 billion euros ($3.5 billion) in the round, giving it a valuation of more than 21 billion euros. It was the largest equity funding round by a private European technology company since Mistral’s establishment in 2023.

Samsung, EQT’s Scale-Up Europe Fund and existing investor PSG Equity led the round. Other participants included ASML, Nvidia, Andreessen Horowitz, Bpifrance, General Catalyst and funds managed by BlackRock.

Mistral plans to use the proceeds to advance its AI models, expand computing capacity and infrastructure, and accelerate its global growth.

“AI is reshaping how we build complex technologies, from silicon to software,” said Arthur Mensch, co-founder and CEO of Mistral AI.

“We are proud to support Samsung Electronics with our expertise in electronics and semiconductors, helping improve how chips are designed and manufactured and accelerate technical progress across the global semiconductor and AI value chain.”

By Jie Ye-eun (yeeun@heraldcorp.com)