The Spanish Council of Ministers has authorised the Ministry for Digital Transformation and Public Administration, through the Spanish Society for Technological Transformation (SETT), to invest €19.1m in Spanish company Substrate AI to develop artificial intelligence solutions that will enable Spain and Europe to compete and lead globally in the sector.
The transaction aims to support one of the few European companies developing its own AI patents and forms part of SETT’s public-private investment strategy. SETT is participating alongside private investors in a €39m capital increase.
Headquartered in Madrid and Talavera de la Reina (Castile-La Mancha), Substrate AI serves more than 500 customers across sectors including healthcare, industry and technology, and employs more than 200 people. The company offers AI products ranging from software for creating and managing AI agents to a cloud computing infrastructure project currently being deployed. The investment is intended to strengthen its AI capabilities, enabling it to compete in intellectual property, data sovereignty and technological leadership across Europe and internationally.
Substrate AI’s platform is organised around four integrated functional modules: agent orchestration, governance and compliance, data security and residency, and enterprise integration. This architecture addresses one of the biggest barriers to AI adoption by businesses: bridging the gap between pilot projects and production deployment.
The platform enables organisations to develop AI prototypes with relative ease and deploy them in real production environments while meeting requirements for security, traceability, cost control and regulatory compliance. According to the company, its technology allows businesses and public administrations to transform their operations through AI, improving productivity and profitability. It is also among the few European companies offering an integrated combination of software, hardware and infrastructure that complies with both the EU AI Act and the General Data Protection Regulation (GDPR).
Substrate AI also has a dedicated healthcare subsidiary with an experienced specialist team. In this area, the company has launched a hub in Talavera de la Reina to develop AI solutions for the healthcare sector in collaboration with the Government of Castile-La Mancha and the University of Castile-La Mancha.
In parallel, the company is working with the Foundation for Research of the Valencia General University Hospital Consortium on an initiative to transform hospital pharmacies using AI, improving patients' access to medicines and optimising drug dosage.
SETT is making the investment through its Next Tech facility, financed by Spain’s Recovery, Transformation and Resilience Plan (EU NextGeneration funds), which is designed to support funding for deep-tech start-ups and scale-ups. SETT also manages two additional investment facilities aimed at strengthening Spain’s technology ecosystem: PERTE Chip, focused on microelectronics and semiconductors, and Spain Audiovisual Hub, which promotes the digitalisation of the audiovisual sector.
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Substrate AI serves more than 500 customers across sectors including h...
