European AI Startups Accelerate U.S. Expansion Amid Rising Demand

News Flash 2026-05-18 20:11

European AI startups are increasingly entering the U.S. market earlier, driven by strong demand from American enterprise customers. Carl Fritjofsson of Creandum notes that European founders are moving to the U.S. sooner to capitalize on this demand, particularly for AI-native products. In 2025, AI companies accounted for 61% of global venture capital funding, rising to 80-81% by early 2026, with U.S. corporate budgets fueling this growth. Despite visa and immigration challenges, the U.S. remains attractive due to its favorable business environment and reduced regulatory hurdles. European AI firms, like Swedish company Lovable, are achieving significant growth in the U.S., with Lovable reaching $4 billion in annual recurring revenue. The concentration of venture capital in the U.S. has made European startups increasingly reliant on American investors, with 73% of lead investors in European AI companies being from the U.S. by the growth stage.

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