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

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

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.

France's privacy watchdog said on Thursday it will question DeepSeek to gain a better idea of how the Chinese startup's AI system works and any possible privacy risks for users.

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.

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:

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.

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.

Mistral, the French AI lab, is working toward an initial public offering, co-founder and CEO Arthur Mensch said in an interview at Davos.

The European Commission set out a years-long plan to regain competitiveness in global industries, as European businesses face fierce competition from China and new challenges under U.S. President Donald Trump.

EUROPEAN tech shares came under pressure on Monday, after Chinese tech startup DeepSeek’s low-cost artificial intelligence model sparked worries about returns in the AI business and the need for costly chips.

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