Mistral AI acquires Austrian AI startup Emmi AI

Mistral AI, one of Europe’s leading AI companies, is set to acquire the Linz-based deep-tech startup Emmi AI. The deal propels Austria to the forefront of industrial AI research.

A bombshell for the Austrian AI sector: French firm Mistral AIMistral AI () is acquiring Emmi AIEmmi AI (), a startup founded as recently as 2024 that develops AI-powered physics simulation models for industrial applications. The purchase price has not been disclosed. However, insiders suggest it is in the hundreds of millions and represents one of the largest exits for an Austrian startup. 

OpenAI rival relies on technology from Austria 

Mistral AI has established itself as a European alternative to global AI giants such as OpenAI and Google. Founded in 2023 and based in Paris, the company is currently valued at around €12 billion. It is the European market leader in large language models (LLMs), offers its products as open source, and already operates data centres across Europe.  

With this acquisition, Mistral is further strengthening its position in the emerging field of industrial AI. The aim is to evolve from a developer of large language models into a comprehensive AI and infrastructure group.

What makes Emmi AI so appealing?

The startup, led by AI researcher and Emmi AI Chief Science Officer Johannes Brandstetter, was founded in December 2024 as a spinoff from Johannes Kepler UniversityJohannes Kepler University () (JKU) Linz and the Austrian AI company NXAINXAI (), which was co-founded by AI pioneer Sepp Hochreiter, among others.

Emmi AI focuses on ‘Physics AI’. These AI models simulate complex physical processes such as airflow, thermodynamics and material deformation in real time, thereby accelerating industrial processes in sectors such as energy, automotive, semiconductors and aerospace.

Linz to become a Mistral site

With this integration, Linz becomes an official Mistral AI location, joining cities such as Paris, London and San Francisco. The entire Emmi AI team will be taken on and further expanded.  

Johannes Brandstetter takes on the role of Vice President, AI for Science, and will be responsible for the AI division for scientific and industrial applications. “Together, we are delivering the fundamental insights required for the development and construction of the next generation of aircraft, vehicles and semiconductors,” says JKU Professor Brandstetter. As Linz becomes an official Mistral location, Brandstetter is convinced that investment in European AI talent and research in the industrial sector will also be stepped up.

“Austria is capable of deep tech” 

According to Elisabeth Zehetner, the State Secretary responsible for start-ups, the deal demonstrates “that Austria has what it takes in deep tech.” It is not merely a matter of an Austrian start-up being sold; rather, a new European AI hub is being established in Austria. “If the expertise, the team and the growth prospects remain in the region and Linz is strengthened as a European hub for industrial AI, this will benefit the entire region.”