France’s Public Investment Bank Announces €10 Billion Investment in Artificial Intelligence Ecosystem

France’s public investment bank, Bpifrance, has announced plans to invest as much as €10 billion (around $10.3 billion at current exchange rates) in the artificial intelligence ecosystem in France. This announcement comes ahead of the Artificial Intelligence Action Summit in Paris, where heads of state and global tech leaders will gather.

Bpifrance’s Investment Strategy

Bpifrance has been a key investor in the tech ecosystem for the past decade, providing small grants to early-stage startups, participating in big funding rounds in exchange for equity, and investing in VC firms directly with its "fund of funds" strategy. The bank’s investment strategy focuses on supporting the growth of AI startups and strengthening France’s position as a global player in this strategic field.

Existing Investments and Future Plans

Bpifrance is already a shareholder in some of France’s biggest AI startups, including Mistral, H, and Poolside (Poolside is based in the US, but has operations in France). The bank has also invested in smaller startups, such as Ekimetrics, Artefact, Braincube, and ChapsVision. With its recent announcement, Bpifrance plans to double down on its investments in the coming years, focusing on foundation models, AI infrastructure companies, and hardware companies working on AI chips.

Expansion into Other Investment Firms

Bpifrance also expects to invest in other investment firms, specifically VC firms that plan to focus on AI investments. The bank is willing to invest in both French and foreign entities, and has already invested in VC firms such as Elaia and Frst, which have raised money from Bpifrance and participated in several AI-focused investment rounds.

Competition and New Partnerships

This investment commitment comes just a few hours after the United Arab Emirates and France announced plans to invest as much as €50 billion ($52 billion) to build a massive AI data center in France with a capacity of up to 1 GW. There will likely be more announcements in the coming days as the AI Action Summit unfolds in Paris, marking a significant increase in investment and activity in the French AI ecosystem.