These startups employ over 36,000 individuals, with a strong emphasis on healthcare and software development. Since their inception, French AI startups have collectively raised a

The logo of France's data protection watchdog CNIL (Commission Nationale de l'Informatique et des Libertes) is seen during a news conference to present the regulator's annual report in Paris, France, May 11, 2022. REUTERS/Gonzalo Fuentes/File Photo

But the rise of DeepSeek suggests European leading firms like France's Mistral, Germany's Aleph Alpha and many other, smaller ventures could also gain ground in the AI race — perhaps even on the cheap. “This shows that the race for AI is far from being over,” European Commission spokesperson Thomas Regnier told reporters on Tuesday in Brussels.

Experts say that China’s AI development shows that regulation does not have to be a barrier for innovation. View on euronews

One of the main problems of the EU AI Act is its risk-based approach to AI regulation. Under the Act, AI systems are classified by their risk level, and high-risk systems will be subject to the most strict requirements. This classification system is problematic for several reasons:

While the EU is implementing sweeping rules to ensure user safety and accountability, U.S. President Donald Trump is rolling back protections and giving more influence to the tech industry.

Europe had multiple AI startups that could plausibly compete with OpenAI and Google. Now it has Mistral.Most Read from BloombergWhat Happened to Hanging Out on the Street?Vienna Embraces Heat Pumps to Ditch Russian GasBillionaire Developer Caruso Slams LA Leadership Over WildfiresHow Sanctuary Cities Are Preparing for Another Showdown With TrumpHoboken PATH Station Will Close for Almost a Month on Jan.

Europe should take greater risks and plow more money into artificial intelligence, Meta's chief AI scientist Yann LeCun told AFP at the World Economic Forum.

Donald Trump's announcement of the $500bn Stargate AI project has sparked fears that European will become beholden to US power.

China-based DeepSeek's artificial intelligence model has shaken the sector by offering high performance apparently at a fraction of the cost of those developed by US giants, with many experts saying the release also hints at opportunity for investment minnow Europe.

Europe needs it the most,” SAP CEO Christian Klein said in response to the U.S.’ Stargate Project — a $500 billion investment in AI infrastructure.

UVeye, a startup that uses AI-driven technology to inspect vehicles to avoid defects and target repairs, said on Wednesday it has raised $191 million in debt and equity to scale up production in North America and Europe.