Mistral AI, a French artificial intelligence company valued at $13.8 billion, has agreed to acquire Paris-based startup Koyeb, signaling a broader push into cloud infrastructure.
Until now, Mistral has been widely recognized for developing large language models. However, this deal confirms that a full-stack strategy is being pursued. In June 2025, Mistral Compute, the company’s AI cloud infrastructure offering, was introduced. With Koyeb now under its umbrella, that initiative is expected to accelerate.
Koyeb, founded in 2020 by three former employees of French cloud provider Scaleway, was created to help developers process data without managing server infrastructure. This serverless approach gained traction as AI workloads became increasingly complex. Recently, Koyeb Sandboxes were launched to provide isolated environments for deploying AI agents.
Integration Into Mistral Compute
Prior to the acquisition, Koyeb’s platform already supported deployment of models from Mistral and other providers. According to statements released by both companies, the platform will continue operating. At the same time, its team and technology will be integrated into Mistral’s broader compute strategy.
Through the acquisition, improved deployment of models on clients’ on-premises hardware is expected to be enabled. GPU usage is also set to be optimized, and AI inference capabilities are likely to be scaled more efficiently. Inference, which involves running trained models to generate outputs, has become a critical component of enterprise AI operations.
As part of the agreement, Koyeb’s 13 employees, including co-founders Yann Léger, Edouard Bonlieu, and Bastien Chatelard, will join Mistral’s engineering team. The group will operate under Chief Technology Officer and co-founder Timothée Lacroix. Over the coming months, Koyeb’s platform is expected to transition into a core component of Mistral Compute.
In a statement, Lacroix said Koyeb’s product and expertise would accelerate development on the compute front and contribute to building what he described as a comprehensive AI cloud.
Growing European AI Infrastructure Ambitions
The acquisition comes as Mistral intensifies its infrastructure investments. Just days earlier, a $1.4 billion investment in Swedish data centers had been announced. That expansion was positioned as a response to rising demand for alternatives to U.S.-based infrastructure providers.
Koyeb had raised $8.6 million in total funding. This included a $1.6 million pre-seed round in 2020 and a $7 million seed round in 2023 led by Paris-based venture capital firm Serena. Investors have framed the acquisition as a strategic step toward strengthening sovereign AI infrastructure in Europe.
In recent months, Mistral has reported significant commercial momentum. Annual recurring revenue has surpassed $400 million, driven in part by enterprise adoption and shifting geopolitical dynamics. Going forward, Koyeb’s focus will also shift toward enterprise customers, and its Starter tier will no longer be open to new users.
Financial terms of the acquisition were not disclosed. It remains unclear whether additional deals are being considered. However, speaking at Stockholm’s Techarena conference last week, Chief Executive Officer Arthur Mensch emphasized that hiring across infrastructure and research roles is ongoing. He described Mistral as a company headquartered in Europe and committed to advancing frontier AI research within the region.
