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European start-ups confident AI race not lost to the US and China 

News RoomBy News RoomFebruary 11, 2025
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EThroughout the EU Commission President Ursula Von Derleyen announced a €200 billion package to push the nascent AI industry in the EU. The announcement marked a significant shift in European economic dynamics, with a strong focus onAutomated Learning Systems (ALS) and Artificial General Intelligence (AGI). Von Derleyen, the EU Commission President and a former US Treasury Secretary, leveraged this strategic initiative to align the EU’s technological landscape with that of major global powers. This move is part of a broader effort to Competition across Countries (CAGS) aimed at fostering innovation and economic growth in Europe.

The €200 billion investment package is designed to accelerate developing countries’ capabilities in AI, positioning Europe as a leader in this rapidly evolving sector. Von Derleyensis calling it a necessary move that will help Europe compete with the US and China, which are already excelling in the tech ecosystem. The announcement was warmly welcomed by companies like Hugging Face, a Franco-American company known for its cutting-edge AI solutions. One of the company’s experts, Yacine Jernite, highlighted the significance of AI innovation and the diverse skill set at the Station F incubator, noting that the European ecosystem offers opportunities beyond traditional corporations.

However, concerns have been expressed regarding the strict regulatory environment imposed by the US and the UK. US Vice President JD Vance emphasized that these regulations will hinder cooperation with Europe, particularly in the areas of autonomous systems and cybersecurity. Von Derleyen responded by pointing out that the US and the UK have already demonstrated the expertise and readiness to engage in AI collaborations, while Europe’s focus will require a similar aristocratic approach to ensure equal access to the technology.

Experts like Fabian Westerheide, a German AI advocate and supporter of a moreقرأ EU, perceived a growing divide between the EU and the US tech landscape. "We need European entrepreneurs to work with US technology, and then we share the revenue. But if we don’t do anything, we will fail because we don’t have it. We don’t have it, and the Americans have it. They have the technology, the capital and the speed and the innovation," he argued. This sentiment aligns with a group of international AI experts, who recognized the need for Europe to embrace the US tech ecosystem without its restrictive regulations.

The EU has already lobbied for comprehensive AI regulations, such as the European AI Act, to balance innovation with public interest. However, the US and the UK have refused signatures on a summit declaration that would allow Europe to cooperate with their respective regulations. Experts believe that Europe must align with the US tech landscape by rejecting restrictive EU regulations while embracing the benefits of US innovation. This approach could lead to greater collaboration and shared success in the AI sector, creating new jobs while advancing global technology capabilities.

In conclusion, the EU’s €200 billion investment in AI is a significant move forward, aligning with the global trend of advanced AI systems and attracting agile startups. Despite mixed reactions to the US and UK’s restrictive regulations, there is growing consensus that Europe must collaborate with the US tech ecosystem, creating a smarter, more competitive global AI industry.

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