Climate tech and AI will shape Europe’s technology future

Atomico highlights Europe’s need for AI, climate tech and defence investment to lead in global tech.
Significant funding in European AI and defence companies highlights the need for increased investment, talent recruitment and infrastructure to secure the continent’s technology future.

Europe faces a pivotal moment in its technology sector, with AI, climate tech and defence set to shape the continent’s future. Sustained investment is essential if Europe wants to remain competitive against the US and China in high-tech industries.

Venture capital firm Atomico’s State of European Tech 2025 report shows that AI already attracts the majority of funding, led by companies such as Mistral AI, Lovable, Synthesia and n8n.

Defence tech is also growing, with firms like Helsing, Isar Aerospace and Cambridge Aerospace securing significant investment to advance AI-powered systems.

Despite strong talent and innovation, Europe must match US levels of research funding, expand computing infrastructure and simplify regulations to realise its potential fully.

Experts say aligning ambition with commitment will be crucial for Europe to develop the next generation of world-leading tech companies.

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