AI In Europe Is Booming And Going Decentralized By Design
AI is having a moment in Europe.
From voice tech in Warsaw to satellites in Sofia, a new wave of startups is turning Europe into one of the most exciting AI ecosystems on the planet. But here's what makes this moment different: Europe isn't just scaling AI. It's reshaping how AI is built—from the ground up.
According to Focus on Business, nearly 48% of all unicorns minted in 2025 are AI startups. It states that out of 23 new unicorns so far this year, 11 are AI-related—showing how AI has become a dominant force in startup valuations
I saw this shift firsthand at ETHCC 2025 in Cannes. The Ethereum Community Conference was buzzing with builders, founders, and researchers. And what stood out most wasn't just the tech—it was the mindset.
The future of AI won't be centralized. And in Europe, it never really was. A Wave of AI Unicorns
Across the continent, companies are reaching unicorn status faster than ever before.
In Paris, Mistral AI has become a household name. With a $6 billion valuation, it's Europe's open-source answer to OpenAI. Their models aren't locked behind paywalls—they're shared, forked, and improved by developers everywhere.
Germany's n8n is doing for automation what GitHub did for code. Its open-source workflow engine now powers backend logic for AI agents and internal tools across thousands of teams.
In Amsterdam, DataSnipper transformed one of the dullest enterprise tasks—auditing—into an AI-powered experience. It became the first EU unicorn of 2024.
In June 2025, Munich-based Helsing closed a €600 million Series D round, led by Prima Materia (Daniel Ek's firm), valuing the company at €12 billion. Helsing builds AI-powered systems for drones, aircraft, submarines—and even autonomous fighter pilots—a clear example of Europe's high-end defence AI breakthroughs
And Lovable, out of Sweden, hit $17 million ARR in three months. It's now one of the fastest-growing AI dev platforms in the world.
Loveable has transformed coding with AI. Loveable AI Built Different: The European Approach
Europe's AI edge isn't just about speed. It's about structure.
According to EU Startup, Europe's AI startups saw 55% year-over-year growth in Q1 2025 investment compared to Q1 2024.
Open source is everywhere. Companies like Mistral and n8n prove that open infrastructure scales faster, builds trust, and wins developer mindshare. Transparency isn't just a value—it's a growth strategy.
In chatting with Karine Arama, Partner at SGH Capital in Paris, she told me that 'Europe is uniquely positioned to join the next wave of AI by embracing open-source principles, privacy-first architectures, and decentralized values. With strong regulatory foresight and a commitment to digital sovereignty, the region is turning trust and transparency into competitive advantages. From Mistral AI's open-weight models to Sesterce's decentralized compute infrastructure and Hugging Face's collaborative platform, a new ecosystem is surfacing - one where ethics, innovation, and independence are deeply intertwined.'
Privacy is a default, not a feature. With regulations like GDPR and the new AI Act, startups here are incentivized to put user control and data protection front and center. That's a long-term moat, not a short-term constraint.
And let's talk security. Switzerland's DeepJudge is tackling AI's dark side—data poisoning, prompt injection, evasion attacks. Their solution helps enterprise teams build AI with defense built in. The AI Infrastructure is Expanding—Even to Space
Europe's ambitions go beyond apps and APIs.
Bulgaria's EnduroSat raised $43 million to launch software-defined satellites. They're building orbital infrastructure that runs AI models in real time. Think weather, defense, communications—all powered from space.
In Spain, Zylon is giving small businesses a private, plug-and-play AI suite that doesn't rely on U.S. cloud providers. That's a game-changer for regulated industries and sensitive data.
And in the UK, companies like Stability AI and Isomorphic Labs are shaping entirely new categories. Stable Diffusion kicked off the open-source image generation wave. Isomorphic Labs, with over £400 million in backing, is applying AI-first thinking to drug discovery.
Another noteworthy company is Tractable, a London-based insurtech pioneer. It reached its $1 billion valuation in June 2021 after its Series D and became one of Europe's first true AI unicorns . In July 2023, it further boosted growth with a $65 million Series E, led by SoftBank Vision Fund 2 Decentralized AI: What I Saw at ETHCC 2025
ETHCC 2025 in Cannes wasn't just about Ethereum. It was about the future of AI—and who will build it.
I was there, live, keynoting, moderating and listening. And it was clear: Europe is leading the way on decentralized AI.
One panel explored zero-knowledge AI—models whose decisions could be mathematically verified. Another unveiled agentic AI tools that govern DAOs, negotiate deals, and execute smart contracts.
And even Silicon Valley founded companies believe that Europe has a big role to play. Zero Gravity Labs (0G) is headquartered in San Francisco and operates globally through a decentralized, remote-first model. CEO Michael Heinrich—speaking on ETHcc 2025—emphasized transparent, Europe-relevant infrastructure and historic resilience, pointing toward a strategic focus on European markets.
CEO Michael Heinrich of Zero Gravity emphasizes the value of working in Europe Sandy Carter
There was also a lot of buzz around decentralized compute marketplaces. Startups like Gensyn and Bittensor let anyone contribute GPU power to train AI models. That means open infrastructure, outside of Big Tech clouds.
What stood out most? AI in Europe isn't just a product. It's a public good. AI Decentralization as a Strategy
Europe isn't copying Silicon Valley. It's building its own model.
In the U.S., we see consolidation—AI controlled by a few platforms. In Europe, we see distribution—tools that anyone can use, shape, or run on their own terms.
This matches Europe's strength: industry-specific depth across many regions.
The UK leads in life sciences. Germany is a force in industrial automation. France drives aerospace. The Nordics are pioneering sustainable AI. Switzerland, the Netherlands, and Belgium bring financial services, cybersecurity, and multilingual markets into the mix.
This diversity gives Europe a superpower: it doesn't need one winner. It needs a network. And that's exactly what's forming. The Next Chapter for AI And Decentralized AI
We're entering a new chapter—one where AI agents, decentralized infrastructure, and private AI platforms work together. Europe isn't just along for the ride. It's in the driver's seat.
In the next year, I expect to see more AI unicorns built in smaller European cities. More models trained on open data, verified with cryptography. And more startups where trust, transparency, and sovereignty are part of the product itself.
The opportunity is here. The talent is here. The infrastructure is here.
And as I saw up close at ETHCC, Europe is ready to lead—not just in building powerful AI, but in building it differently.
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