Venture capital investment into Europe’s tech industry plunged by half in 2023 as investors continued to reel from the effects of high interest rates, according to data from venture capital firm Atomico.

However, artificial intelligence was a standout category that saw continued mega funding rounds.

Atomico’s “State of European Tech” report, published Tuesday, showed that overall funding for European venture-backed companies is projected to decline 45% in 2023 from a year ago.