Generative AI sector rises in Europe’s tech scene The most remarkable subset within the AI space this year has undoubtedly been Generative AI. Generative AI companies focus on developing and applying arti昀椀cial intelligence technologies, particularly machine learning techniques, to generate new content, data, or media. This category features companies like Mistral AI and Aleph Alpha in Europe, alongside OpenAI (the makers of ChatGPT) and In昀氀ection AI in the United States. While Generative AI companies may represent a relatively small fraction of overall tech fundraising activity on an absolute count basis, they have swiftly had an outsized impact on work昀氀ows, regulatory discourse, and society at large. What is also notable is that whilst generative AI companies have leapt into the public consciousness in 2023, they have been quietly being started and funded in greater numbers for many years, both in Europe and the US. Count of rounds in GenAI in respective regions, 2019 to 2023 Europe US 125 100 s 75 d n u o r f o # 50 25 0 2019 2020 2021 2022 2023YTD Notes: Data is as of 30 September 2023. Sources: Excludes the following: biotech, secondary transactions, debt, lending capital, and grants. | 150