In only a few days, France will host the Synthetic Intelligence Motion Summit, with heads of state flocking to Paris to satisfy world tech leaders. They’ll more than likely announce some large investments and diplomatic agreements targeted on security or the environmental influence of synthetic intelligence.
Forward of the summit, early-stage VC agency Galion.exe, progress funding agency Revaia, and advisory agency Chausson Companions teamed as much as create the French AI Report, which appears to be like on the present developments within the tech ecosystem.
Whereas all eyes are at present on the U.S. and China with OpenAI trying to elevate tens of billions of {dollars} and DeepSeek capturing everybody’s consideration, there was a increase in AI startups in Europe, too. In 2024 alone, AI firms represented round 20% of all VC funding within the area.
In whole, that represents round $8 billion in funding for AI startups in 2024. That metric is more than likely going to develop quickly, as AI startups are nonetheless comparatively younger. Seventy p.c of the capital raised by AI startups in 2024 was for a seed to Collection B spherical.
European nations that have a tendency to draw VC funding normally have additionally grow to be the primary AI funding hubs, with the U.Ok. main the group, France and Germany following go well with, and the Nordics punching above its demographic weight. Right here’s the breakdown from 2020 to 2024:
Curiously, as AI firms grow to be larger, they have a tendency to draw worldwide buyers, with U.S. VC companies accounting for round 50% of cash invested in AI firms on the Collection C spherical and later.
In France extra particularly, there are “greater than 750 startups which have created 35,000 jobs and function in all areas which can be remodeling immediately’s society,” Minister Delegate for synthetic intelligence and digital applied sciences Clara Chappaz mentioned at a press convention.
She additionally talked about that there are 2,000 scientists targeted on AI analysis and 600 doctorate college students engaged on synthetic intelligence. And you’ll have seen that there are fairly a number of French engineers and researchers working for AI firms within the U.S., too.
The staff behind the French AI Report regarded extra intently on the prime 400 AI startups in France and tried to establish the rising stars. Whereas Mistral AI and Poolside are already some acquainted names for readers who’ve adopted the AI business, the overwhelming majority of AI startups aren’t engaged on the subsequent basis mannequin.
On the infrastructure entrance, some firms are optimizing the information workflows and pipelines, equivalent to Linkup and Kestra, or bettering inference efficiency, equivalent to ZML, or growing brokers that may sift via giant information units and enhance productiveness. Mud is an effective instance of that.
However the actuality is that almost all AI startups in France are specializing in purposes for particular verticals. Primarily based on this report, two vital areas for AI startups in France are well being and local weather.
Owkin and its spin-off biotech firm Bioptimus have been main the pack on the well being tech entrance, however it’s a surprisingly various group of firms with three large areas of curiosity: imaging instruments, drug discovery, and medical remedy enchancment.
Equally, whereas a big chunk of the AI business is concentrated on productiveness features for workplace staff, synthetic intelligence can be actively getting used to construct the next-generation of local weather startups. Along with agritech, carbon and power administration — two subjects which can be associated — appear to be an enormous focus. There are additionally a handful of promising new supplies firms which can be rising (Altrove, as an example).
All the businesses included within the record will be discovered right here. You’ll additionally discover loads of AI firms engaged on one job perform — gross sales, buyer care, HR or authorized — and utilizing AI to simplify the most typical duties.
In fact, some firms aren’t going to be there in 5 years. However a lot of them are at present rising at a speedy tempo. We’re nonetheless at the start of the AI revolution, and although it’s simple to consider the AI business as a zero-sum recreation with one nation or one firm “successful” over the others, it looks as if the AI increase is extra distributed than anticipated.