Summary

• Private equity and venture capital firms based in EU member states increased their investment in local AI companies by 83.3% year-over-year to $6.8 billion in 2025.
• Europe-based private equity and venture capital investment in local AI companies outpaced outbound investments to the US in value and deal volume.
• Private equity firms can also spur investment in local AI providers by funding AI startups directly and creating demand when their portfolio companies adopt AI to improve operations.

Private equity and venture capital firms based in EU member states increased their investment in local AI companies by 83.3% year-over-year to $6.8 billion in 2025.

However, the number of deals was down to 392 in