A new Accel report finds the United States still leads in large AI models, but Europe is rapidly catching up in the application layer. Emerging firms such as Lovable and Synthesia are highlighted as category leaders, while European and Israeli startups have raised 66 cents for every dollar raised by U.S. peers. The report notes unprecedented growth speed, with AI‑native applications reaching $100 million in annual recurring revenue in just a few years and delivering the highest revenue‑per‑headcount in software history. Venture capitalists see defensibility in product‑centric offerings and believe proprietary data remains undervalued. Read more →