The number of artificial intelligence (AI) companies in the Baltics has grown by more than half over the past year, from 184 to 282, according to the latest The Baltic AI Landscape 2026 report. The latest data shows that private companies still account for a relatively small share of the European Union funding available in the Baltics for AI, digitalisation and technology development projects.
The Baltic AI Landscape 2026 was prepared by Venture Faculty and Proposal Peak, a platform developed in Latvia, in collaboration with Dealroom, one of the world’s largest company and investment databases. The report maps companies operating in Latvia, Lithuania and Estonia, identifying 282 AI companies in total – an increase of just over 53% compared with the previous year.
Estonia has the largest number of AI companies, with 113, followed by Latvia with 95 and Lithuania with 74. Compared with the previous year, the number of companies grew by 49% in Estonia, 42% in Latvia and 80% in Lithuania.
Latvia stands out in software and AI research and development, accounting for 17 of the 28 companies in this category across the Baltics. Latvia also has the region’s largest group of “AI-first” companies: ten businesses built around artificial intelligence technologies from the outset.
Across the Baltics, the largest concentration of AI companies is currently in sales and marketing technology,
with 53 companies. This is followed by FinTech and LegalTech with 36 companies, EdTech and creative AI solutions with 32, and AI infrastructure and development tools with 31.
Private companies make limited use of available funding opportunities
One of the key findings of The Baltic AI Landscape 2026 concerns the use of European Union funding. Between 2022 and 2026, Baltic organisations secured 78 million euros through the Digital Europe Programme (DIGITAL), covering 194 organisations and 387 project participations. Lithuania secured the largest share of funding among the Baltic states, at 27.9 million euros, followed by Estonia with 25.7 million euros and Latvia with 24.4 million euros.
The distribution of funding reveals considerable untapped potential in the private sector. Universities, research organisations and public sector institutions received 45.9 million euros, or 58.9% of the total, while 72 private companies secured 16.5 million euros, or just 21.2%. Private companies also held the coordinator role in only three of their 98 project participations.
Edgars Poga, co-founder and head of Proposal Peak, says these figures reveal a significant growth opportunity for Baltic technology companies alongside the current distribution of funding.
“The Baltics have plenty of technology companies and ideas,
yet private sector participation in European funding programmes remains relatively low. Of the 282 AI companies identified, only 72 currently participate in the Digital Europe Programme. This means a substantial proportion of companies still have an opportunity to use public funding for product development, technological development and collaboration with partners in other European countries,” says Poga.
The structure of the funding also offers a significant advantage to companies. Participation in EU funded consortia can cover a substantial share of product or technology development costs while allowing companies to retain the intellectual property rights to the results they create. Previous successful participation in projects can also improve a company’s prospects of qualifying for future funding calls and eventually taking on the role of lead partner in a consortium.
“Companies should see EU funding as a tool for long-term business development as well as a grant for a specific project. It allows them to finance part of their research and product development costs, build international partnerships and gain experience that helps them compete for future projects. AI and other technology companies in particular would benefit from systematically monitoring available programmes and beginning their funding search well before a call approaches its deadline,” Poga emphasizes.
Latvia strengthens its position in the Baltic AI ecosystem
The report shows that AI development in the Baltics is supported by the emergence of new companies, alongside greater access to computing infrastructure, capital and public funding programmes. In 2025, nine new investment funds focused on the region began operating in the Baltics, with combined capital of approximately 300 million euros. AI companies attracted 46% of all venture capital funding in the region.
Riga Technical University also plays a significant role in Latvia, having secured 4.8 million euros through the Digital Europe Programme. Meanwhile, LVRTC, with 2.4 million euros, is one of Latvia’s largest funding recipients outside the university sector.
The report’s authors conclude that wider use of EU funding by the private sector could become one of the key drivers of further growth in the Baltic AI ecosystem. Currently, 72 private companies participate in the Digital Europe Programme, while the total number of AI companies identified in the Baltics stands at 282.