TLDR:
Europe is catching up with the U.S. in early-stage AI investing, with a growing excitement in European cities like Paris and London. The U.S. still leads in VC funding, but Europe is closing the gap.
Article Summary:
A ‘febrile’ excitement in European cities like Paris and London is helping early-stage AI firms keep up with the U.S., according to a report by Fortune. While the U.S. still leads in VC funding, Europe is closing the gap with growing hype around European AI. Europe has some AI champions of its own, but the early dollars have established the U.S. as the leading market for AI. Europe is creating more startups than in the U.S., and some companies are attracting serious interest. However, European AI companies have not yet raised billion-dollar rounds like U.S. companies. Partners at European venture capital funds are optimistic that Europe is catching up with the U.S., particularly in early-stage investment.
One major area where the EU has proved a laggard is in the value of startup exits, with the biggest exits happening in the U.S. Some of the biggest prizes in AI investment are likely to remain in the U.S. as companies like OpenAI and Anthropic continue to attract investors. There is a significant capital gap at the later stage in Europe, which is hindering the development of the VC ecosystem. European startups have had more exits, but the biggest exits have come from the U.S.
