Paris-based Cathay Innovation announced the final close of its latest venture capital fund at $1 billion, making it the largest AI-dedicated fund in the European Union.

While headquartered in France, the fund invests across Europe, the US and Asia in “vertical AI solutions” in four key sectors: digital health, fintech, consumer and mobility / energy.

“The successful close signals a greater shift in AI-era venture capital, where the success of startups and established industry players are increasingly intertwined,” said Cathay Innovation.

“Fund III is backed by a diverse base of institutional investors as well as multinational corporations looking to access the latest AI startup technologies key to industry wide transformation.

“This includes major organizations such as Sanofi, TotalEnergies, Valeo, BNP Paribas Cardif, Groupe SEB and Groupe ADP (Paris Aéroport) since first closing, joined by several international industry players including Vale Ventures, Copec WIND Ventures and more.”

Mingpo Cai, Founder and Chairman of Cathay Capital and Cathay Innovation, said: “In one of the most challenging fundraising periods the venture industry has seen, Fund III illustrates the power of value-added capital.

“The benefits of the Cathay platform go far beyond capital, it’s rooted in providing solutions that are useful to our investors, corporate partners and founders.

“Regardless of macroeconomic uncertainties, the AI-driven transformation of industries will go on. Our mission is to support local champions and create ecosystem synergies that benefit all stakeholders while creating lasting economic and societal impact.”

Cathay Innovation’s global platform connects startups with its corporate ecosystem, a broad network of 20+ Fortune 500 corporations to facilitate deeper industry collaboration.

This includes strategic partnerships, co-investments or other business development opportunities such as global biopharma Sanofi’s ongoing AI initiatives with Cathay Innovation portfolio companies Owkin, Aqemia and Inato.

“Fund III represents a new kind of VC fund built for the AI era, with the capital and ecosystem needed for real industrial and societal change,” said Denis Barrier, Co-founder of Cathay Innovation.

“AI is a general-purpose technology—like electricity— not offering incremental improvements, but with the potential to reinvent entire industries. This shift has redefined the role of startups from disruptors to transformation partners, with collaboration now the new currency for success.

“Over the past decade, we’ve built the world’s largest venture capital platform that can connect startups and corporate innovation under one roof to drive this transformation together.”