European AI leader Mistral AI announced Monday it has acquired Emmi AI, an Austrian startup specializing in physics-based AI models for industrial engineering, in what the companies are calling one of Europe's most strategic AI acquisitions to date.

Founded in 2024 in Linz, Emmi AI has emerged as a leader in Engineering AI, developing models that dramatically accelerate industrial simulations and engineering workflows across energy, automotive, semiconductors, and aerospace sectors. The startup raised €15 million last year in Austria's largest-ever seed round, led by 3VC, Speedinvest, Serena, and PUSH VC.

Financial terms were not disclosed. Emmi AI's team of more than 30 researchers and engineers will join Mistral's Science and Applied AI teams in May 2026.

The acquisition positions Mistral as the leading AI transformation partner for industrial enterprises, combining its AI platform with Emmi's expertise in computational fluid dynamics, thermal analysis, and material stress testing. Linz will become an official Mistral office alongside Paris, London, Amsterdam, Munich, San Francisco, and Singapore.

"By engineering the first comprehensive AI stack fueled by Physics AI, we are set to deliver real-time simulations and sophisticated digital twins," said Guillaume Lample, Mistral's Chief Science Officer.

This marks Mistral's second acquisition following its purchase of French AI startup Koyeb earlier this year.