Xavier Niel, one of Europe’s top technology investors, believes the region can succeed in creating leading artificial intelligence companies even without the billions in capital raised by US competitors — as long as founders are not tempted to cash out too early.

“I think we can create big things with a few hundred million euros,” the French billionaire who made his fortune in telecoms with operator Iliad and now invests broadly in start-ups. This includes backing Paris-based AI group Mistral which has soared to a €6bn valuation within a year of being founded.

“Europe can create competitive AI models today,” he said in an interview with the Financial Times. “But over the next two or three years, [success] depends on the number of initiatives and the ability of those who are the real geniuses — those building the best companies — not to be swallowed up or to sell too quickly.”