LightOn shares surge 9% in market debut as Europe’s first listed generative AI startup goes public
Nickie Louise
Posted On November 26, 2024
With the number of generative AI startups steadily climbing since ChatGPT’s debut in 2022, one company has taken the leap to go public, becoming Europe’s first listed generative AI startup.
Paris-based generative AI startup LightOn made its market debut today, with shares surging as much as 9% during their first trading session on the Euronext Growth market in Paris. By 0841 GMT, the stock was trading at 10.79 euros per share, up 4.2% from its IPO price of 10.35 euros.
This follows the company’s initial public offering (IPO) just two weeks earlier. The IPO valued LightOn at around 62 million euros ($65.1 million), exceeding its earlier expectations of 50 million euros, according to Reuters.
Founded in 2016 by Igor Carron and Laurent Daudet (co-CEOs), along with Florent Krzakala and Sylvain Gigan, LightOn specializes in large language model (LLM) software tailored for businesses and institutions. Its clients include major players like Safran and France’s Space Command forces.
Unlike LightOn, other notable European generative AI companies, such as France’s Mistral and Germany’s DeepL, have opted to remain private and raise funds through traditional venture capital rounds.
“This planned IPO offers investors a unique opportunity to participate directly in the growth of a French technology champion that is already successfully deploying its AI solutions with major groups in France and abroad,” said co-CEOs Igor Carron and Laurent Daudet in a statement.
France’s AI Ambitions
France is positioning itself as a key hub for artificial intelligence in Europe, aiming to close the innovation gap with the U.S. and Britain. Earlier this year, Alphabet’s Google launched an AI-focused center in the country, highlighting France’s commitment to the sector.
President Emmanuel Macron has also set ambitious goals for France’s tech ecosystem, stating his intention to increase the number of tech unicorns in the country to at least 100 by 2030. This is a steep climb from the current count of 27.
Meanwhile, Euronext CEO Stephane Boujnah noted that a growing number of European tech companies are primed to go public, suggesting that LightOn’s move may inspire others to follow suit.
Generative AI Growth Worldwide
Generative AI continues to expand globally, with an estimated 67,200 startups operating as of September 2024. A quarter of these companies are based in the United States. If current trends hold, the number of generative AI startups worldwide could reach 100,000 soon, underscoring the rapid growth and interest in the sector.
LightOn’s public debut not only sets a precedent for European AI startups but also signals growing confidence in the region’s ability to compete in the global AI race.
