February 6, 2025 – While the artificial intelligence industries in the United States and China have been grabbing headlines, with companies like OpenAI seeking billions in funding and DeepSeek causing a “shockwave” in Silicon Valley and on Wall Street, Europe’s AI startups are quietly but swiftly emerging as a significant force.
In 2024, the AI sector accounted for approximately 20% of European venture capital funding, with European AI startups receiving close to $8 billion in total funding. This figure is expected to rise sharply as the AI industry continues to thrive and many AI startups are still in their infancy. Notably, 70% of the funding went towards seed to Series B rounds.
Certain European countries are becoming prominent hubs for AI investment, led by the UK, followed closely by France and Germany. Even the Nordic region has exceeded investment expectations considering its population size.
As these AI companies grow, they are attracting more international investors, particularly from the US. In fact, American venture capital firms account for about 50% of later-stage investments (such as Series C and beyond).
In France, specifically, the growth of the AI sector has been remarkable. According to Clara Chappaz, the French Minister for AI and Digital Technology, there are now over 750 AI startups in the country, creating 35,000 jobs across various transformative sectors. France also boasts 2,000 AI researchers and 600 PhD students dedicated to AI-related work. Furthermore, many French engineers and researchers occupy key positions in American AI companies.
