The potential of generative AI knows no limits. And what we’ve seen now may just be the tip of the iceberg.
For years, companies around the world have been working to improve their AI capabilities, whether in the United States, China, or France.
The potential of generative AI to increase productivity, spark creativity and overhaul workflows is now taking off across countless industries. Regardless of the business case, companies working on or building their own generative AI tools have been catapulted to the forefront of the conversation.
At our inaugural Brainstorm AI conference at the Rosewood Hotel in London, where we will address some of these complex but urgent topics, Fortune delved into the state of the art of generative AI around the world, with exclusive insights based on data from Amsterdam-based intelligence firm Dealroom.
Our analysis covers the world’s top 100 generative AI companies in terms of funding. It is no surprise that companies based in the United States (and particularly in the San Francisco Bay Area) have dominated other regions by light years. Sam Altman-led OpenAI is, by far, the best-funded AI company, while its Californian neighbors Anthropic and Inflection AI follow closely. In Europe, companies such as Mistral AI and Aleph Alpha have gained traction for their innovations.
However, companies in France, the United Kingdom and Germany have received a fraction of the funding, not because there isn’t enough of it, but because they haven’t reached the gargantuan size of their American counterparts. Israel, which we included in our analysis, also has a vibrant generative AI scene.
In numbers, that means Dealroom’s data on the 100 companies leaves out those that have raised less than $70 million in funding. This is where most nascent European companies fall. Since Dealroom data primarily considers funding figures in this case, some noteworthy players in the field of generative AI, such as Google, are not part of the following analysis.
But Europe needs to pat itself on the back for some of the progress it has made. For example, three of the 15 companies on our list have female founders. Seven companies were initially founded in Europe, but have since moved to the United States, where they have secured approximately $1.7 billion in funding.
Given the technology’s varied use cases, defining what qualifies as a generative AI company can be difficult. By definition, generative AI uses algorithms to create new, realistic content, including text, images, and audio, based on training data. Dealroom’s data, updated to April 2024, looks at companies using or creating large language models trained on massive datasets to produce new content.
The graphs below give us an idea of how Europe compares to some of the world’s leading AI players. They also show us where the biggest breakthroughs in generative AI are being made in Europe and who the movers and shakers are.
Total funding for the world’s top 100 generative AI startups, by region
It is clear that the United States received the majority of the funding. American companies have the advantage with more than 10 times the funding: $36.8 billion in funds raised compared to European and Israeli companies, which have raised only $3.2 billion so far. OpenAI is a clear leader with $12.3 billion in funding raised, according to data compiled by Dealroom.
Major European markets are home to the largest generation AI players in terms of funding
In our analysis, Israel leads Europe as a hub for generative AI companies, based on how much they have obtained in terms of funding. In continental Europe, Germany and France emerge at the top.
According to Dealroom data, the majority of funding for European companies comes from European investors. About 43% of funding for European and Israeli companies comes from their home countries, about 13% comes from another European country, and 39% comes from the United States.
The most funded companies in Europe and Israel
Here’s a look at the most funded companies in Europe and Israel: Aleph Alpha, the German answer to OpenAI founded by Jonas Andrulis, leads the category. In November 2023, Bosch, SAP and Hewlett Packard Enterprise supported a $500 million Series B funding round, marking one of the largest AI funding rounds ever in Europe.
In second place is the French Mistral AI, driven by Arthur Mensch. Microsoft said it will invest $16.3 million in the French company in February.
Below is the full list of generative AI companies based in Europe and Israel ranked by funding, according to data from Dealroom.
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 financing: $553 million
FW21
Launch year: 2017
Headquarters City/Country: Tel Aviv-Yafo, Israel
Total funding: $326.5 million
Lightricks
Launch year: 2013
Headquarters City/Country: Jerusalem, Israel
Total financing: $305 million
There was
Launch year: 2016
Headquarters city/country: London, United Kingdom
Total financing: $302.5 million
Synthesis
Launch year: 2017
Headquarters City/Country: London, United Kingdom
Total financing: $155.58 million
Stability of artificial intelligence
Launch year: 2019
Headquarters City/Country: London, United Kingdom
Total funding: $151 million
Poolside AI
Launch year: 2023
Headquarters City/Country: Paris, France
Total financing: $126.01 million
Pecan
Launch year: 2016
Headquarters City/Country: Tel Aviv-Yafo, Israel
Total funding: $112 million
DeepL
Launch year: 2009
Headquarters City/Country: Cologne, Germany
Total funding: $110 million
MDClone
Launch year: 2015
Headquarters City/Country: Beersheba, Israel
Total financing: $104.01 million
Short
Launch year: 2016
Headquarters City/Country: Copenhagen, Denmark
Total funding: $90.9 million
The bed
Launch year: 2014
Headquarters City/Country: Pozuelo de Alarcón, Spain
Total funding: $85.8 million
Sana Labs
Launch year: 2016
Headquarters City/Country: Stockholm, Sweden
Total funding: $82.57 million
Player ready
Launch year: 2014
Headquarters City/Country: Tallinn, Estonia
Total funding: $72.55 million
This article was reported with assistance from Fortune Europe Executive Editor Alex Wood Morton, Lists Editor Grethe Schepers, Research Analyst Elena Medina and Production Editor Aslesha Mehta.