The article also identifies four main reasons why AI is attracting big investments: the immense compute power required to train and run AI models, the race to recruit talent, the need for money to pay out royalties on content IP used to train and run models, and the need for investors to find places to put their money. It also notes that Paris has established itself as the center of AI development in Europe, particularly in the category of generative AI.
Key takeaways:
- Artificial intelligence (AI) startups are attracting significant venture capital funding, with nearly 30 deals of over $100 million in the U.S. and 14 such investments in Europe as of August 2024.
- AI startups are driving the European startup ecosystem, with over 1,700 funding rounds for AI startups in the region in 2024. Paris is emerging as the center of AI development in Europe.
- Four main reasons for large investments in AI are the immense compute power required, the race to recruit talent, the need for money to pay out royalties on content IP, and the need for investors to find places to put their money.
- Some of the biggest funding rounds in European AI in 2024 include Wayve ($1 billion), Mistral ($650 million and $431 million), Helsing ($484 million), Poolside ($400 million), DeepL ($320 million), H ($220 million), Flo Health ($200 million), and Pigment ($145 million).