European AI landscape: France leads in startups while Barcelona emerges as a major hub

France has established itself as a European leader in artificial intelligence, hosting 1,114 active AI startups as of 2026. This represents a 16% annual increase, placing the country ahead of Germany and the United Kingdom. The sector has created over 45,000 jobs and raised a total of 16 billion euros since its inception, with sector turnover exceeding one billion euros in 2025.

Despite this growth, challenges remain. Less than one-third of these startups are currently profitable due to high computing and model training costs. Additionally, reports suggest a gap between the success of these startups and the broader adoption of AI technologies across the wider French economy.

Meanwhile, Barcelona is emerging as a major European AI hub. In 2025, the city ranked third globally for attracting foreign AI investment projects, trailing only London and Singapore, and holding the top position within the European Union. This growing ecosystem is increasingly attracting French entrepreneurs drawn by the city's quality of life and professional opportunities.