Italy Unveils 150M Euros Fund to Support AI Startups

Italy is the latest country looking to shore up the domestic development of an AI ecosystem quickly. As part of its Strategic Program for Artificial Intelligence, the government will “soon” launch a 150 million Euro fund to support startups in the field, backed by development bank Cassa Depositi e Prestiti (CDP).

FREMONT, CA: Italy is the latest country in the EU aiming to strengthen its domestic AI ecosystem's development rapidly. Alessio Butti, Italy's cabinet undersecretary responsible for technological innovation, announced that the government would soon initiate a 150 million Euros fund to support startups in the field.

The development bank Cassa Depositi e Prestiti (CDP) will support the fund. While Butti did not provide specific details regarding the funding amount, government sources later informed Reuters that discussions in Rome were centred around a figure of approximately 150 million Euros.

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The objective here is to enhance the self-reliance of the Italian industry and foster the national capacity for skill development and research in this sector. To help promote AI studies, research, and programming within Italy, they are partnering with CDP to set up an investment fund aimed at the most innovative startups.

The AI boom is undeniably underway, as evidenced by Nvidia's recent achievement of becoming the first chipmaker to reach a valuation of USD one trillion. Following this milestone, the company's stocks experienced a boost, with sales predicted to reach USD 11 billion in Q2, primarily attributed to utilising Nvidia chips to power OpenAI's ChatGPT (which incidentally encountered some issues with Italy).

Governments, while emphasising regulatory supervision, are also motivated to support domestic AI developers for diverse reasons. Recently, the UK allocated 100 million pounds in funding to establish a task force to facilitate the development and adoption of the next generation of safe AI.

Italy, too, is actively pursuing the establishment of its specialised task force. Butti expressed that Italy must update the sector's strategy, and as such, the Department for Digital Transformation is currently engaged in forming a distinguished consortium comprising Italian experts and scholars.

In 2021, Italy introduced the Strategic Program for Artificial Intelligence 2022-2024, recognising the industry's rapid evolution. This comprehensive strategy is a collaborative effort involving the ministries responsible for university and research, economic development, technological innovation and digital transition. A working group dedicated to the national strategy for AI provides guidance.

The program encompasses 24 policies that will be implemented for three years. In addition to fostering the growth of AI within the country, the program aims to promote STEM subjects and attract international researchers by increasing the number of available doctorates. Furthermore, it seeks to establish data infrastructure for public administration and provide specialised support for GovTech startups addressing critical issues in the public sector.

Venture capital funds dedicated to supporting startups in emerging technologies like artificial intelligence (AI) are becoming increasingly common worldwide. Italy's decision to establish a 150 million Euros fund demonstrates the country's recognition of the importance of AI and its potential to drive innovation and economic growth.

The fund's primary objective is to provide financial support and resources to AI startups in Italy. This investment will enable these startups to develop their products, research, and scale their operations. The fund aims to bolster Italy's tech ecosystem by nurturing AI innovation and positioning the country as a hub for AI-driven enterprises.

Financial backing from such a fund can significantly benefit AI startups in various ways. It can provide them with access to seed funding, early-stage investment, and mentorship opportunities. Additionally, the fund may offer guidance and support in navigating regulatory frameworks, intellectual property protection, and market access.

This initiative reflects Italy's commitment to fostering technological advancement and encouraging entrepreneurship in the AI sector. By providing financial resources and fostering an enabling environment for startups, the country aims to capitalise on the potential of AI to drive economic growth, create jobs, and enhance competitiveness.

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