Source of this article and featured image is TechCrunch. Description and key fact are generated by Codevision AI system.
The U.S. leads in large AI models, but Europe and Israel are gaining ground in the AI application layer, with startups like Lovable and Synthesia leading the charge. Accel’s 2025 Globalscape report highlights this shift, noting that European and Israeli startups raised 66 cents for every dollar raised by their American counterparts. The report credits the region’s thriving ecosystem of founders and investors for this growth. Anna Heim, the article’s author, explains that European and Israeli startups are not just filling Big Tech labs but building their own AI-native applications. This trend is supported by the AI Europe 100 report, which highlights promising European startups with strong growth potential.
Key facts
- The U.S. leads in large AI models, but Europe and Israel are gaining ground in the AI application layer.
- Accel’s 2025 Globalscape report shows European and Israeli startups raised 66 cents for every dollar raised by their American counterparts.
- The region’s thriving ecosystem of founders and investors has contributed to the growth of AI-native applications.
- European and Israeli startups are not only filling Big Tech labs but also building their own AI-native applications.
- The AI Europe 100 report highlights promising European startups with strong growth potential.
