France Leads in Generative AI Funding Race in Europe

By Jace Dela Cruz

Jun 20, 2024 01:41 AM EDT

France is leading in the generative AI funding race in Europe, according to a new report by venture capital firm Accel and analysts at Dealroom. 

France Leads the Generative AI Funding Race in Europe

TechCrunch, citing the report, reported that French startups in the generative AI sector have collectively raised $2.29 billion, surpassing all other European countries and Israel.

This influx of capital includes notable contributions from companies like Mistral AI, which recently secured $640 million, and "H," which raised $220 million in a seed round. Additionally, Poolside is reportedly in the process of gaining a substantial round.

Paris, a burgeoning hub for AI development, has seen significant activity with Hugging Face, an open-source machine learning model repository, raising $235 million in August 2023.

Another key player is Kyutai, a research-focused organization with substantial funding for developing open-source AI models.

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Thomas Cazenave, Minister of Public Accounts, during the presentation at the URSSAF (public fund collecting social contributions from employers and the self-employed) of the deployment of generative artificial intelligence (AI) with voicebots, chatbots et livechats intended to strengthen user service in Labege, southwest of France, on May 24, 2024.
(Photo : PAT BATARD/Hans Lucas/AFP via Getty Images)

London Leads in AI Startup Creation

While Paris ranks mid-tier among European cities for AI startup creation, with London leading at 27%, followed by Tel Aviv at 13%, Berlin at 12%, and Amsterdam at 5%, France's funding dominance is clear.

France's $2.29 billion in funding almost matches the combined total of the next three countries: the UK at $1.15 billion, Israel at $1.04 billion, and Germany at $636 million. Other countries in the region have raised considerably less, often only in the seven-digit range.

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