Mistral AI, a French company that was previously valued at around $13.8 billion, has announced its first acquisition: the acquisition of Koyeb, a Paris-based startup that simplifies deploying AI applications at scale and manages the corresponding infrastructure.
This deal underscores Mistral’s ambition to become a full-fledged player in the AI cloud solutions space. In June 2025 the company launched Mistral Compute – its own cloud infrastructure for AI, and it is now expected that the collaboration with Koyeb will accelerate the development of this area.
Deal Context and Strategy
Koyeb, founded in 2020 by three former Scaleway employees, aimed to create developers’ lives simpler by letting them work with data without worrying about server infrastructure – a concept known as serverless. This solution gained significance as AI requireds grew and became a catalyst for launching Koyeb Sandboxes, which provide isolated environments for deploying AI agents.
Prior to the acquisition, the Koyeb platform had already assisted deploy models from Mistral and other companies. According to Koyeb, the platform will remain in operation, but its team and technologies will now support Mistral in deploying models directly on customer equipment (on premises), optimizing GPU usage and scaling inference – the process of running the model to generate responses.
As part of the deal, 13 Koyeb employees and three co-founders – Yan Leje, Eduard Bonlyu, and Bastien Chatelar – will join Mistral’s engineering division led by the chief technology officer and co-founder Timothy Lacroix. Under his leadership, Koyeb is set to become the core of the Mistral Compute component in the coming months.
“The product and expertise of Koyeb will accelerate our development in the Compute direction and assist build a true cloud AI environment.”
Mistral did not disclose the financial terms of the deal. It is also expected that the company will continue to grow its staff in infrastructure and other roles, positioning itself as a European headquarters focapplyd on cutting-edge research in Europe.
Koyeb had previously raised $8.6 million in funding: $1.6 million in pre-seed in 2020 and $7 million in a 2023 seed round, led by the Paris-based venture fund Serena.
Given market requireds and the growing role of sovereign AI infrastructure in Europe, the acquisition of Koyeb allows Mistral to strengthen its position on the continent. Koyeb will also tarobtain corporate clients, while starter accounts for new applyrs will no longer be available.
This deal underscores Mistral’s aim to build a strong European cloud ecosystem for artificial ininformigence and strengthen the infrastructure backbone for future developments.
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