In just some days, France will host the Artificial Intelligence Action Summit, with heads of state flocking to Paris to fulfill world tech leaders. They’ll probably announce some massive investments and diplomatic agreements centered on security or the environmental impression of synthetic intelligence.
Forward of the summit, early-stage VC agency Galion.exe, progress funding agency Revaia, and advisory agency Chausson Partners have teamed as much as create the French AI Report, which seems to be on the present traits within the tech ecosystem.
Whereas all eyes are at present on the U.S. and China with OpenAI seeking to increase 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 corporations 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 probably going to develop quickly, as AI startups are nonetheless comparatively younger. Seventy % of the capital raised by AI startups in 2024 was for a seed to Collection B spherical.
European international locations that have a tendency to draw VC funding on the whole have additionally grow to be the primary AI funding hubs, with the U.Ok. main the group, France and Germany following swimsuit, and the Nordics punching above its (demographic) weight. Right here’s the breakdown from 2020 to 2024:
Apparently, as AI corporations grow to be greater, they have a tendency to draw worldwide buyers, with U.S. VC companies accounting for round 50% of cash invested in AI corporations 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 are remodeling at this time’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 centered on AI analysis and 600 doctorate college students engaged on synthetic intelligence. And you will have observed that there are fairly a number of French engineers and researchers working for AI corporations within the U.S., too.
The workforce behind the French AI Report seemed extra carefully on the high 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 following basis mannequin.
On the infrastructure entrance, some corporations are optimizing the information workflows and pipelines, akin to Linkup and Kestra, or bettering inference efficiency, akin to ZML, or growing brokers that may sift by means of massive knowledge units and enhance productiveness. Mud is an efficient 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 essential 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, nevertheless it’s a surprisingly numerous group of corporations with three massive areas of curiosity: imaging instruments, drug discovery, and medical therapy enchancment.
Equally, whereas a big chunk of the AI business is concentrated on productiveness beneficial properties for workplace staff, synthetic intelligence can also be actively getting used to construct the next-generation of local weather startups. Along with agritech, carbon and power administration — two subjects which are associated — appear to be an enormous focus. There are additionally a handful of promising new supplies corporations which are rising (Altrove, for example).
All the businesses included within the listing can be found here. You’ll additionally discover loads of AI corporations engaged on one job perform (gross sales, buyer care, HR or authorized) and utilizing AI to simplify the commonest duties.
In fact, some corporations 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 initially 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 “profitable” over the others, it looks like the AI increase is extra distributed than anticipated.