18 crossroads magazine A thriving AI ecosystem Luxembourg is home to a diverse community of start- ups, corporates, research centres and public institu- tions developing responsible and impactful AI solu- tions. A recent mapping by Luxinnovation, the national innovation agency, covers 568 entities – including tech- nology providers, solution developers, potential data holders, innovative users, support networks and inves- tors – engaged across the entire AI value chain. The mapping shows that 80% of these entities were founded within the past 10 years, highlighting a surge in AI entrepreneurship driven by Luxembourg’s sup- portive environment. Nearly half of the companies developing AI-driven solutions focus on IT and cyber- security as well as the finance and insurance sectors – areas that reflect the country’s economic strengths. A robust support system of consultancy firms, research institutions and a dynamic investment community bol- sters the growth of AI in Luxembourg, and it is expect- ed that the number of companies offering high-quality AI solutions will continue to grow dynamically. Luxembourg enters into partnership with Mistral AI The Luxembourg government signed a partnership with Mistral AI as part of its goal to position the coun- try as a world leader in the sovereign data economy. “To remain a modern country and to be a leader in certain areas, you need to embrace AI – and AI has to go together with a sovereign data economy,” said Prime Minister Luc Frieden at the Nexus Luxembourg tech event in June 2025. Founded in France in 2023, Mistral AI’s mission is to democratise AI through open-source, efficient and innovative models, products and solutions. The com- pany founders say they envisioned a different, auda- cious approach to artificial intelligence: “to challenge the opaque-box nature of ‘big AI’, and make this cut- ting-edge technology accessible to all”. “We are talking about a technology that will drive multiple digits of GDP and influence many strategic areas, including defence,” said Arthur Mensch, CEO of Mistral AI. “When deploying such technology – par- ticularly in critical infrastructure – you must ensure that you hold the keys to turn it on and off.” The partnership will support the implementation of artificial intelligence across multiple sectors, including priority fields such as health, space and finance. The gov- ernment has also foreseen close cooperation between Mistral AI and the Luxembourg Armed Forces to further integrate advanced AI tools into military activities. In addition, the cooperation aims to accelerate AI adoption within the public sector and foster collabo- ration with public research institutions. The research areas are wide-ranging, and the ultimate goal is to en- sure a tangible societal impact. 18 © Luxinnovation/René Garcia