Microsoft and European AI lab Mistral are teaming up to expand AI compute infrastructure in Europe.

Revealed by the companies this week, Microsoft will invest multiple billions of dollars in AI infrastructure in Europe, including GPUs, which will be shared with Mistral.

According to the companies, this will include thousands of Nvidia Vera Rubin GPUs for Mistral's use and will provide a shared platform for training, inference, and large-scale deployments.

This will also expand Microsoft's European capacity and will be consistent with the cloud giant's approach to infrastructure, combining owned data centers, leased facilities, and third-party providers.

In addition to the hardware agreement, Mistral models including the Medium 3.5 and OCR 4 will be available via Microsoft Foundry. The former will also be offered in Copilot Studio.

The models will be available both on Azure public cloud, and Azure Local, including fully disconnected Local deployments.

"Europe should have access to the world's most capable AI without compromising control over their data, operations or digital future," said Brad Smith, vice chair and president, Microsoft. "By bringing Mistral's frontier European models into our sovereign cloud portfolio and enabling them across public cloud, cloud-connected and fully disconnected environments, we are honoring the European Digital Commitments we made and giving customers a trusted foundation for AI they can operate on their own terms."

"Our mission has always been to put frontier AI in the hands of every organization while keeping them in control of their technology," added Arthur Mensch, founder and CEO, Mistral. "With Microsoft as our partner, our models reach enterprises and public institutions at global scale — delivered through a platform trusted for the most demanding, regulated workloads and available everywhere our customers operate."

Microsoft and Mistral previously partnered in early 2024, with Microsoft at the time set to support Mistral with Azure AI supercomputing infrastructure, including exploring how to use the increased compute to train purpose-specific models for select customers, including European public sector workloads. Microsoft also took a small stake in the business.

Last month, Mistral announced plans to offer AI cloud services to customers. Mistral has previously stated that it hopes to control 200MW of compute capacity across Europe by the end of 2027. The company raised $830 million in debt financing to fund the purchase of GPUs for its planned data center outside Paris in March 2026, and has signed on for capacity from Digital Realty in the city.

In April 2025, Microsoft pledged to increase its European data center capacity by 40 percent over the next two years. This year so far, the company has acquired land for further developments in Germany and Finland, announced plans for data centers in Norway, started construction on a site in Italy, and launched a cloud region in Denmark.

In June 2026, the company was designated a "gatekeeper" under the European Commission's Digital Markets Act. Among the reasons given for this were that the company's AI offerings had become a "decisive factor in cloud procurement." It said: "AI is significantly increasing the demand for cloud-related services, [and] AWS and Azure appear to retain a large proportion of this increased demand within their respective ecosystems."