EQT's €5bn Scaleup Europe Fund is in advanced talks to lead or co-lead French AI startup Mistral's Series D funding round, according to three sources familiar with the matter.

The potential investment would mark one of the largest European tech funding rounds this year, with Mistral's valuation reportedly reaching €6.1bn after a €44.4bn total addressable market estimate. Previous rounds valued the company at €2.9bn.

The Scaleup Europe Fund, which closed at €5bn in 2023, typically invests €50m-€100m per deal. EQT's involvement signals strong institutional confidence in Europe's AI champion amid growing competition from US rivals.

Mistral, founded in 2023, has raised over €1bn to date. The Series D could include participation from existing backers like Nvidia and Salesforce. Regulatory scrutiny in the EU may influence deal structure.