That annoys me a lot that ASML that is quite a good stock with a good business dilute themselves with that.
Mistral might or might not be a good business in the future but that puts ASML subject to the potential AI bubble.
If they have too much cash at hand, and they wouldn't see any good use to invest on staying ahead in the technological race, it would be better to give back the money to shareholders. Then individual shareholders could decide if they want to put their extra money in Mistral or not.
Behind this, you can easily guess that some politician pressured the company to support the European AI unicorn. That is the European way, ruining what works well...
Sure, there is an AI bubble. But 13B valuation for a startup that is the best positioned to have access to most EU entreprise needs of AI, this does not feel overvalued to me. Mistral does not even need to produce leading models, they just need to produce good enough models that do not lag too much behind the top ones.
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[ 5.3 ms ] story [ 56.6 ms ] threadMistral might or might not be a good business in the future but that puts ASML subject to the potential AI bubble.
If they have too much cash at hand, and they wouldn't see any good use to invest on staying ahead in the technological race, it would be better to give back the money to shareholders. Then individual shareholders could decide if they want to put their extra money in Mistral or not.
Behind this, you can easily guess that some politician pressured the company to support the European AI unicorn. That is the European way, ruining what works well...
I thought the duty of a company is to maximise the return to shareholders.
Anyway, totally not a bubble.
Sure, there is an AI bubble. But 13B valuation for a startup that is the best positioned to have access to most EU entreprise needs of AI, this does not feel overvalued to me. Mistral does not even need to produce leading models, they just need to produce good enough models that do not lag too much behind the top ones.