France’s public investment bank, Bpifrance, has announced a major investment of up to €10 billion ($10.3 billion) in the country’s AI ecosystem by 2029. This significant financial commitment arrives just days before Paris hosts the AI Action Summit, where global tech leaders and heads of state will convene.
Key Points:
- Bpifrance will invest €10 billion in AI by 2029, backing startups, AI infrastructure, and specialized hardware.
- The bank is already a key investor in leading AI companies like Mistral, H, and Poolside.
- Funding will also flow into venture capital firms investing in AI, including both French and foreign entities.
Bpifrance has been a major force in France’s tech scene for over a decade, funding early-stage startups and participating in large funding rounds. This new commitment will focus on three areas: foundation models, AI infrastructure, and AI-specialized chips. The investment strategy also extends to venture capital, supporting firms like Elaia and Frst, which have backed AI-focused startups.
The investment strategy spans multiple fronts. Bpifrance plans to focus on foundation models, AI infrastructure companies, and hardware firms developing specialized AI chips. The bank will also continue its "fund of funds" approach, investing in both French and international venture capital firms that concentrate on AI investments.
Bpifrance's track record in AI investment dates back to 2015, with the bank playing a pivotal role in nurturing France's AI ecosystem. It also holds stakes in prominent French AI companies like Mistral and H, as well as U.S.-based Poolside. Through its partnership with France 2030, the bank has already deployed €3.4 billion in innovative AI projects in 2024 alone. Its portfolio includes investments in companies like Ekimetrics, Artefact, Braincube, and ChapsVision.
The announcement coincides with increased global AI investment, particularly in the U.S. and China, as governments and companies race to secure dominance in the sector. France sees this investment as a way to bolster its AI sovereignty and competitiveness.
Chris McKay
This initiative follows a recent agreement between France and the UAE to build a €50 billion AI data center in France, further strengthening the country’s role in AI development. As the AI Action Summit unfolds in Paris, more announcements and partnerships are expected in the coming days.