In just some days, France will host the Synthetic Intelligence Motion Summit, with heads of state flocking to Paris to fulfill world tech leaders. They’ll most probably 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, development funding agency Revaia, and advisory agency Chausson Companions have teamed as much as create the French AI Report, which appears to be like on the present traits within the tech ecosystem.
Whereas all eyes are at the moment on the U.S. and China with OpenAI trying 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 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 most probably 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 basically have additionally develop into 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:
Apparently, as AI firms develop into greater, they have a tendency to draw worldwide traders, 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 “more than 750 startups that have created 35,000 jobs and operate in all areas that are transforming today’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 will have observed that there are fairly just a few French engineers and researchers working for AI firms within the U.S., too.
The staff behind the French AI Report seemed extra intently on the prime 400 AI startups in France and tried to determine 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 info workflows and pipelines, equivalent to Linkup and Kestra, or enhancing inference efficiency, equivalent to ZML, or growing brokers that may sift by way of giant information units and enhance productiveness. Mud is an efficient instance of that.
However the actuality is that the majority AI startups in France are specializing in functions for particular verticals. Based mostly 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 targeted on productiveness good points for workplace employees, synthetic intelligence can also be actively getting used to construct the next-generation of local weather startups. Along with agritech, carbon and vitality administration — two matters which can be associated — appear to be a giant 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 listing will be discovered right here. You’ll additionally discover loads of AI firms engaged on one job operate (gross sales, buyer care, HR or authorized) and utilizing AI to simplify the most typical duties.
After all, some firms aren’t going to be there in 5 years. However a lot of them are at the moment rising at a fast tempo. We’re nonetheless originally 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 “winning” over the others, it looks as if the AI increase is extra distributed than anticipated.
