Mistral has acquired Austrian startup Emmi AI, its second acquisition in three months. Emmi builds foundational AI models for simulating complex engineering processes, such as fluid dynamics around a plane wing or crash impacts on cars. The deal signals Mistral's push into industrial AI, targeting sectors like aerospace, automotive, and semiconductors.

Founded in 2023, Mistral raised nearly €11.7bn in valuation and is considered Europe's most promising AI firm. Emmi had raised a €15m seed round last year. Mistral CEO Arthur Mensch said the acquisition cements the company's leadership in industrial AI and positions it as a partner for high-stakes manufacturing.

The move reflects a US-style M&A cycle in Europe—a young, highly valued startup acquiring a premium-priced startup just a year after its seed round. Emmi's team of over 30 employees will join Mistral, with further hiring in Austria, Germany, and Lithuania planned.