Dutch chip equipment maker ASML has invested 1.3 billion euros ($1.5 billion) to become the biggest investor in French artificial intelligence startup Mistral AI in a significant boost to Europe's AI ambitions.

A fundraising led by Europe’s biggest tech company gives the region’s top AI contender new firepower in its quest to build homegrown models.

ASML Holding NV is investing €1.3 billion ($1.5 billion) in France’s Mistral AI, an unusual move for the Dutch chipmaking equipment company that shores up Europe’s most important artificial intelligence startup.