Mistral AI Expands Horizons with Its First Acqisition of Koyeb
Mistral AI, the innovative French tech firm valued at an impressive $13.8 billion, has set its sights on expansion with the acquisition of Koyeb— a noteworthy Paris-based startup known for streamlining AI app deployment and managing essential infrastructure.
Initially recognized for its groundbreaking work in large language models (LLMs), Mistral’s acquisition of Koyeb symbolizes its ambition to evolve into a full-fledged tech powerhouse. Earlier in June 2025, the company unveiled Mistral Compute, an AI cloud infrastructure initiative, and it aims to expedite this further with Koyeb’s capabilities.
Founded in 2020 by three former Scaleway employees, Koyeb was established to enable developers to manage data processing without the complexities of server infrastructure— a model dubbed as serverless. This approach gained traction as AI demands escalated, driving innovations like Koyeb Sandboxes, which offer dedicated environments for deploying AI agents.
Before the merger, Koyeb’s platform was already facilitating the deployment of models from Mistral and other providers. In a recent announcement, Koyeb assured users that its platform will continue to operate independently while its team will now assist Mistral in deploying models on customer hardware, enhancing GPU efficiency, and scaling AI inference— the methodology behind generating responses from trained AI.
As part of this strategic move, Koyeb’s team of 13, including co-founders Yann Léger, Edouard Bonlieu, and Bastien Chatelard, will integrate into Mistral’s engineering group, overseen by CTO Timothée Lacroix. Lacroix envisions Koyeb becoming an integral part of Mistral Compute in the near future.
With this acquisition, Lacroix emphasized that Koyeb’s product will significantly accelerate Mistral’s cloud developments, paving the way for a cohesive AI cloud infrastructure. This is part of a broader strategy; just days ago, Mistral announced a monumental $1.4 billion investment into data centers in Sweden, responding to the rising demand for alternatives to U.S.-based infrastructure.
Koyeb had previously secured $8.6 million in funding, including a $1.6 million pre-seed round and a $7 million seed investment led by Paris’s VC firm Serena, who hailed the acquisition as a major step towards fortifying the foundations of sovereign AI infrastructure in Europe.
Thanks to favorable geopolitical circumstances and a keen focus on aiding enterprises in leveraging AI, Mistral recently achieved over $400 million in annual recurring revenue. With a new focus on enterprise clients, Koyeb will retire its Starter tier for new users.
While the financial details of the acquisition remain under wraps, Mistral’s CEO, Arthur Mensch, hinted at future hiring for infrastructure roles, framing Mistral as a European frontrunner in cutting-edge research ready to attract top talent.