Market & Regulation
European AI Funding Surge Boosts Startup Scene
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Why it matters
- →European AI funding is increasing, potentially boosting the region's startup scene.
- →New AI labs and startups are emerging, creating talent hubs in Europe.
- →Despite growth, European funding still lags behind the U.S., highlighting a competitive gap.
European AI funding is on the rise, with nearly half of venture capital in 2026 going to AI-related companies. This increase is driving the formation of new AI labs and startups, such as Recursive Superintelligence and Ineffable Intelligence in London. Despite this growth, European funding still trails behind the U.S., where companies like OpenAI have raised significant amounts. The trend is creating talent hubs in Europe, but many startups continue to seek growth opportunities in the U.S.
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