In a burst of tech developments, French AI startup Mistral’s new chatbot Le Chat climbed to the top of app downloads, heralding a breakthrough for European artificial intelligence amid growing UAE-French cooperation in the sector. The win comes as France strives to build itself into a leading force in global AI development.
French Chatbot Races Past Global Tech Giants
Le Chat has partnered with UAE G42-backed Cerebras Systems to deliver speeds of 1,000 words per second, making it the world’s fastest chatbot. The app outpaces both OpenAI’s ChatGPT and Chinese rival DeepSeek, which had itself recently topped app store rankings.
The success spotlights Mistral’s swift rise since its founding in 2023 by researchers Arthur Mensch, Guillaume Lample, and Timothée Lacroix.
UAE Investment Powers French AI Dreams
The UAE has pledged €30-50 billion to build Europe’s largest AI data center in France. The one-gigawatt facility, backed by UAE’s tech-focused MGX fund, will compete with U.S. and Chinese computing power. The project anchors France’s broader AI strategy, which pinpoints 35 potential data center sites across the country.
This investment follows DAMAC Properties’ earlier moves into AI. The Emirati conglomerate has invested in Mistral AI alongside stakes in other AI firms like Anthropic and xAI. These investments cement the UAE’s growing role in directing the future of global AI development.
MGX Expands Global Tech Footprint
The UAE’s tech goals reach beyond France. MGX has joined a $500 billion U.S. AI infrastructure project called ‘The Stargate Project,’ partnering with OpenAI, SoftBank, and Oracle to build data centers across America. The venture begins with $100 billion in immediate funding, with the remainder to be deployed over four years.
The size of these investments shows the UAE’s push to become a major player in global AI infrastructure. Through MGX, the country seeks to manage $100 billion in AI-focused assets, directing money into technologies and startups while spurring innovation across multiple regions.
UAE’s Non-Oil Growth Push Bears Fruit
These tech investments advance the UAE’s economic diversification. The UAE’s non-oil private sector has maintained strong growth in early 2025, with the S&P Global UAE Purchasing Managers’ Index at 55.0 in January. More than 25% of UAE businesses reported better activity at the year’s start, driven by local demand even as exports slowed.
The push into AI represents a calculated move for the UAE, as it works to cut its dependence on oil revenues. By backing both European and American AI initiatives, the UAE stands as a bridge between major tech ecosystems while building its own technological muscle.
Obstacles Block French AI Dreams
Though progress continues, roadblocks persist. French tech startups often move to America for better funding, and EU rules could hobble innovation. As one tech boss put it, “America innovates, China replicates, and the EU regulates.” The need for foreign investment to fuel France’s AI dreams reveals gaps in domestic funding abilities.
But with nuclear power offering cheap energy for data centers and top engineering talent from schools like École Polytechnique, France holds strong cards in the AI race. The UAE’s backing might just help it play them right. As AI computing needs grow, with U.S. data center power use set to triple by 2028, France’s abundant nuclear energy could give it an edge in the global tech arena.
Keep up with Daily Euro Times for more updates!
Read also:
U.S.-UAE Deepen Tech Cooperation with $500 Billion AI Deal
Google Lifts Ban: A New Era for AI in Defense?
The Kremlin Manipulates AI to Sway German Vote
