French AI startup Mistral is acquiring Paris-based adtech company Pimento in a cash-and-shares deal valued at €12.7 million, according to documents reviewed by Sifted. The transaction marks Mistral's first acquisition as it expands beyond foundational models into applied AI applications. Pimento, founded in 2022, develops generative AI tools for creative teams in marketing and branding.

The startup's technology allows users to generate consistent visual assets from text prompts, serving clients in advertising and design. Mistral, valued at €6 billion following its June funding round, aims to integrate Pimento's creative workflow capabilities into its enterprise offerings. The deal includes €7.5 million in cash and €5.2 million in Mistral shares.

Pimento's team of twelve will join Mistral's product division, led by Chief Product Officer Guillaume Lample. The acquisition reflects a broader trend of AI model providers moving up the stack to capture application-layer value. Regulatory approval is not expected to be required given the deal size.