The potential of generative AI knows no bounds. And what we see now may be just the tip of the iceberg.
For years, companies around the world have been working to improve their artificial intelligence prowess – be it in the US, China or France.
The potential of generative AI to improve productivity, stimulate creativity, and redefine work processes is now beginning to emerge across countless industries. Regardless of the business case, companies working on or building their own generative AI tools have found themselves at the forefront of the conversation.
Celebrating our first Brainstorm AI conference at the Rosewood Hotel in London, where we will explore some of these complex but relevant topics, Luck took a deep dive into the state of the art in generative artificial intelligence around the world with exclusive insight based on data from Amsterdam-based intelligence firm Dealroom.
Our analysis covers the world’s 100 largest generative AI companies by funding. It’s no surprise that companies based in the US (and the San Francisco Bay Area in particular) dominate other regions by light years. OpenAI, led by Sam Altman, is by far the most highly funded artificial intelligence company, with California neighbors Anthropic and Inflection AI close behind. In Europe, companies such as Mistral AI and Aleph Alpha have gained traction for their innovations.
However, companies in France, Britain and Germany have received some of the funding – not because there is not enough of them, but because they have not reached the gigantic size of their American counterparts. Israel, which we included in our analysis, also has a vibrant generative AI scene.
By the numbers, this means that Dealroom’s data on 100 companies excludes those that have raised less than $70 million in total funding. This is where the bulk of young European companies end up. Because Dealroom’s data here primarily focuses on funding metrics, some noteworthy players in the generative AI space, such as Google, are not included in the analysis below.
But Europe has to pat itself on the back for some of the successes it has achieved. For example, three of the 15 companies on our list have female founders. The seven companies were originally founded in Europe but then moved to the US, where they received approximately $1.7 billion in funding.
Given the various use cases for this technology, defining what qualifies as a generative AI company can be challenging. By definition, generative AI uses algorithms to create new and realistic content, including text, images, and audio, based on training data. Dealerum data, that is, as of April 2024, considers companies that either use or create large language models trained on huge data sets to create new content.
The charts below give us an idea of how Europe compares to some of the world leaders in artificial intelligence. They also show us where the biggest advances in generative AI are being made in Europe and who the driving forces are.
Total funding for the world’s top 100 generative AI startups by region
It is clear that the US received the lion’s share of funding. US companies lead the way with more than 10 times the amount of funds raised at $36.8 billion, compared to European and Israeli companies, which have raised only $3.2 billion so far. OpenAI is the clear leader with $12.3 billion in funds raised, according to Dealroom data.
Key European markets where the largest AI players by funding are concentrated
In our analysis, Israel leads Europe as a hub for generative AI companies based on the amount of funding they have received. In continental Europe, Germany and France are at the top.
According to Dealroom, most funding for European companies comes from European investors. Approximately 43% of funding for European and Israeli companies comes from their home countries, about 13% comes from other European countries and 39% comes from the United States.
The most funded companies in Europe and Israel
Here’s a quick look at the most funded companies in Europe and Israel: Aleph Alpha, the German answer to OpenAI founded by Jonas Androulis, tops this category. IN November 2023Bosch, SAP and Hewlett Packard Enterprise backed a $500 million Series B funding round, one of Europe’s largest artificial intelligence funding rounds ever.
The second place is occupied by the French Mistral AI, headed by Arthur Mensch. Microsoft said it would invest $16.3 million in the French company in February.
Below is a complete list of generative AI companies headquartered in Europe and Israel, ranked by funding. Dealer room data.
Aleph Alpha
Launch year: 2019
Headquarters city/country: Heidelberg, Germany
Total funding (USD): $641.14 million
Mistral AI
Launch year: 2023
Headquarters city/country: Paris, France
Total funding: $553 million
AI21
Launch year: 2017
Headquarters city/country: Tel Aviv-Yafo, Israel
Total funding: $326.5 million
Lighttrix
Launch year: 2013
Headquarters city/country: Jerusalem, Israel
Total funding: $305 million
Sulfur
Launch year: 2016
Headquarters city/country: London, Great Britain
Total funding: $302.5 million
Synthesis
Launch year: 2017
Headquarters city/country: London, Great Britain
Total funding: $155.58 million
AI stability
Launch year: 2019
Headquarters city/country: London, Great Britain
Total funding: $151 million
AI at the pool
Launch year: 2023
Headquarters city/country: Paris, France
Total funding: $126.01 million
pecan
Launch year: 2016
Headquarters city/country: Tel Aviv-Yafo, Israel
Total funding: $112 million
DipL
Launch year: year 2009
Headquarters city/country: Cologne, Germany
Total funding: $110 million
MDClone
Launch year: 2015
Headquarters city/country: Be’er Sheva, Israel
Total funding: $104.01 million
Corti
Launch year: 2016
Headquarters city/country: Copenhagen, Denmark
Total funding: $90.9 million
Stratio
Launch year: year 2014
Headquarters city/country: Pozuelo de Alarcon, Spain
Total funding: $85.8 million
Sana Labs
Launch year: 2016
Headquarters city/country: Stockholm, Sweden
Total funding: $82.57 million
Ready player, I am
Year of launch: year 2014
Headquarters city/country: Tallinn, Estonia
Total funding: $72.55 million
This was reported with the assistance of Fortune Europe executive editor Alex Wood Morton, list director Greta Schepers, research analyst Elena Medina and production editor Aslesha Mehta.