French artificial intelligence startup Mistral AI has raised $830 million in debt financing to fund the expansion of its AI data center infrastructure, the company announced.

The significant funding round will enable Mistral to build up its computing capabilities as demand for AI services continues to grow across enterprise and consumer markets. The debt financing represents one of the larger funding rounds for a European AI company as the sector attracts increasing investment.

Mistral, which develops large language models and AI software, plans to use the capital to expand its data center operations and computing infrastructure. The company has been working to compete with larger AI firms by focusing on efficient and specialized AI models.

The financing comes as AI companies worldwide are raising substantial amounts of capital to fund the expensive computational infrastructure required for training and running advanced AI systems. Data centers equipped with specialized chips for AI workloads require significant upfront investment but are essential for companies looking to scale their AI operations.

The debt financing structure allows Mistral to access growth capital while potentially avoiding dilution that would come with equity fundraising. European AI companies have been working to secure funding to compete with well-funded American counterparts in the rapidly evolving artificial intelligence market.