Small Island Nation Surpasses US in AI Startups Per Capita

There are other hotspots in the AI revolution outside Silicon Valley. Malta, a tiny island in the Mediterranean, is making significant technological investments. 

Artificial Intelligence is becoming more and more popular among businesses, educational institutions, and government agencies as a way to automate tasks, improve education, and even alleviate traffic during rush hour.

Even though the nation is home to just over 500,000 people, startup tracker Tracxn Technologies reports that 56 AI businesses have already emerged there. That works out to be one company for every 9,500 people. 

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In the meantime, according to Tracxn, there are about 24,000 AI companies in the United States, a country with a population of over 330 million. or one for almost every 14,000 locals.

The nation has long been known as a popular destination for affluent travellers. The second most sought-after foreign passport program for Americans last year was its “golden passport,” which grants wealthy foreigners citizenship in exchange for investing a set amount of money in the nation.

It also began investing extensively in AI before ChatGPT started the AI arms race. Malta declared its intention to become the “Ultimate AI Launchpad” by 2030 in 2019. 

The objective was to create in Malta “a place in which local and foreign companies and entrepreneurs can develop, prototype, test, and scale AI, and ultimately showcase the value of their innovations across an entire nation primed for adoption.” Artificial intelligence is the “springboard from Malta to the world.”

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Between the pandemic and a change in the political leadership, their efforts came to a standstill. Malta is currently developing a new AI strategy under the EU’s AI Act, the region’s comprehensive AI regulation that prohibits inappropriate use cases, according to Bloomberg.

The goal of this reinvigorated effort is to employ the technology safely. For example, they are creating programs to fight the loss of jobs and ethical standards.

AI professor Alexiei Dingli, who is in charge of Malta’s initiatives, such as the traffic jam project, told Bloomberg that “foresight in recognizing the importance of AI has given Malta a head start in the field of AI, and it continues to be a leader in the industry today.”

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