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Berlin’s Bold Bet: 800 AI Startups in Two Years Amid Bubble Fears

A billion-euro gamble on Berlin’s tech future could redefine Europe’s AI scene—or crash under its own hype. Will ambition outpace reality?

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1 min read
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Berlin’s Bold Bet: 800 AI Startups in Two Years Amid Bubble Fears

Berlin-based entrepreneur Udo Schloemer has announced an ambitious plan to launch 800 new startups in the city over the next two years. The initiative comes as concerns grow about a potential bubble in the AI market, with some experts warning that valuations may already be overheated.

Schloemer, known for supporting over 1,100 companies through his Factory campus—including SoundCloud and Gorillas—now aims to focus heavily on artificial intelligence and technology. He believes AI can speed up product development and cut costs, helping startups reach market maturity faster.

To back this push, Schloemer plans to establish a billion-euro fund. The investment will target young talent in Germany’s startup scene, providing financial support to fuel innovation. Yet the rapid growth in AI has raised alarms. Economists and strategists suggest the sector may already be in bubble territory. Despite this, Forbes predicts the AI boom will last until at least 2026, driven by rising stock prices and key industry moves. These include Google Gemini's challenge to ChatGPT's dominance, Anthropic's potential IPO, and OpenAI's hiring of former Figma CEO Fidji Simo as its next leader. German startups remain hopeful that economic reality will match the high expectations in AI. But with valuations climbing, some fear a correction could be on the horizon.

Schloemer’s billion-euro fund and startup drive will test whether Germany can sustain its AI growth. If the sector continues expanding, his investments could solidify Berlin’s role as a tech hub. But if a bubble bursts, the impact on new ventures may be severe.

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