Mistral CEO Arthur Mensch has rejected criticism from Pope Leo over the military use of AI, saying Europe needed its own tools to deter rivals using the technology.
Pope Leo issued a document on Monday urging international regulation to curb the development of AI systems and warning it could spread false information and fuel constant conflict.
He also criticised the use of AI in warfare.
Mr Mensch, who is also Mistral's co-founder, said Europe could not ignore the use of AI by adversaries.
"We're all for peace, but if you look at our rivals and adversaries in the world, they're using artificial intelligence. As long as we have adversaries that are threatening, and they are threatening, we do need to have our own capabilities," he told reporters.
Mistral, which was valued at €11.7 billion last year, positions itself as a European alternative to US AI giants as part of a wider push in Europe to reduce dependency on US technology companies.
The company said it would build a data centre in Les Ulis, France, with 10 megawatts of computing power, due to open in the second half of 2026. The move, part of a broader €4 billion investment strategy, will complement existing facilities in Sweden and France and help the company reach a planned 200 megawatts of computing power by the end of 2027 and 1 gigawatt by 2030. It said the capacity would serve its own needs and be rented to other AI labs.
The expansion is part of Europe's broader effort to accelerate data-centre infrastructure to compete with the US, with support from French President Emmanuel Macron, who has highlighted the country's energy exports as an enabler for such projects.
Around the world, including in France, data-centre construction increasingly faces opposition from people who live near the sites.
Mistral's announcement follows growing scepticism toward stech firms, particularly among younger generations. Videos have recently surfaced of students booing executives during US graduation ceremonies, highlighting concerns over the societal impact of AI.
"I think there is some expected anguish around artificial intelligence," Mr Mensch said. "It's not the first time that people are a bit anguished at something coming up. But we'll be fine. We'll find a way to use it efficiently."
