Recently, the AI space has been on speed dial. The U.S. government and companies are racing for dominance, DeepSeek launched what many consider the most advanced AI model yet, and now, Europe is making waves with a rapid surge in AI funding.
This funding boom comes just days before France hosts the Artificial Intelligence Action Summit. The event will bring together world leaders and top tech executives to discuss AI’s impact on economies, security, and sustainability. Major investment announcements and diplomatic agreements on AI safety and environmental concerns are also expected.
Europe’s AI Boom
Early-stage VC firm, Galion.exe, growth investment firm, Revaia, and advisory firm, Chausson Partners collaborated on the French AI Report, offering a new perspective on Europe’s AI ecosystem. While OpenAI and DeepSeek dominate headlines, Europe has quietly become a major AI player.
In 2024, AI startups accounted for 20% of all venture capital funding in the region, pulling in a staggering $8 billion. The AI sector is still in its early days, with 70% of 2024’s funding going to startups in the seed to Series B rounds. This suggests that Europe’s AI scene is primed for long-term growth.
The Hubs Powering European AI Investments
The usual VC hotspots have also become AI powerhouses. The U.K. leads the charge, with France and Germany closely behind. Meanwhile, the Nordics continue to punch above their weight, attracting AI funding at impressive levels.
As AI companies scale, they’re attracting international backers. U.S. venture capital firms now account for nearly 50% of investments in Series C rounds and beyond, signaling strong global confidence in European AI innovation.
France’s AI Scene: 750 Startups and Counting
Zooming in on France, the numbers are just as impressive. Minister Delegate for AI and Digital Technologies, Clara Chappaz, revealed that the country is home to over 750 AI startups, creating 35,000 jobs. The research scene is thriving, too, with 2,000 scientists and 600 doctorate students dedicated to AI development.
Notably, many French engineers and researchers play key roles in U.S.-based AI firms. This highlights France’s deep talent pool in the sector.
Rising Stars in French AI
The French AI Report analyzed the country’s top 400 AI startups and identified key players shaping the industry. While big names like Mistral AI and Poolside are already making headlines, most French AI startups aren’t focused on building massive foundation models.
Instead, many are building AI infrastructure. Companies like Linkup and Kestra are optimizing data workflows, while ZML is enhancing inference performance. Others, like Dust, are developing AI agents to improve productivity in industries.
AI for Health and Climate
Two standout sectors in France’s AI boom are health tech and climate solutions.
- Health Tech: Companies like Owkin and its biotech spinoff, Bioptimus, are leading the charge. Startups are focusing on imaging tools, drug discovery, and improving medical treatments.
- Climate Tech: AI is also being used to drive sustainable innovations. Agritech, carbon management, and energy optimization are top priorities. Companies like Altrove are developing new materials to accelerate green technology.
