AI in Europe, China and the US  - getting squeezed

Developing thoughts of a recent discussion in response to the AI summit in Paris (see link to Guardian article below).

EQT (link below): The seven largest U.S. tech companies, Alphabet (Google), Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla, are 20 times bigger than Europe’s seven largest, and generate 10 times more revenue.
So what's to be done?

Willem Jonker recently wrote a piece on innovation ecosystems that addressed this:
In the past year, two important reports regarding European competitiveness, innovation and research were published ... [t]he very fact that they were separate reports illustrates the shocking disconnect between economic policy and R&I policy in the EU. Other disconnects include the poor alignment of EU public and private R&I investments, and of EU and member state economic policies. These disconnects have led to the relatively weak position of the EU economy compared to that of the US and China.

Jonker goes on to contrast European innovation with the US and China:
It is often argued that the US puts the successful individual first, China prioritises the state, and Europe tries to find a middle ground.
He argues that entrepreneurs can only emerge in those environments that deliver the right conditions.
But environments are more than just "top down" - the societal differences between Europe (EU++) and the US/China are such that it's hard to see how European societies in general will accept either a centralised government-driven/regulated approach or the individualistic free-for-all that characterises the US.

In the last year I have twice met a Senior Policy Officer in the European Commission in the ‘Platforms Policy and Enforcement’ Directorate (which has responsibility for enforcement of the Digital Services Act (DSA) and the Digital Markets Act (DMA)). In several lively discussions, in which people from the European tech and investment communities pushed back hard on the EU’s regulation of AI in particular, the official made it absolutely clear that - as far as the EU is concerned - the protection of EU citizens lies at the heart of current and forthcoming legislation and is absolutely non-negotiable. The vehemence of his stance (it seems to be something of a personal mission) was a wonder to behold.

On the one hand, the data free-for-all that exists in other parts of the world (especially the US) is not something that I feel comfortable about. On the other hand, being caught in Europe between China and the US in a tech race, if regulation is going to hold us back (and we’re already behind in many respects), we need to look at this very seriously.

References
US and UK refuse to sign Paris summit declaration on ‘inclusive’ AI, Guardian, 11 February 2025. Link here.
Why is Europe’s Tech Industry Lagging Behind the US? EQT ThinQ, 3 September 2024. Link here.
Viewpoint: Europe needs innovation ecosystems to power growth, Willem Jonker, Science|Business, 6 February 2025. Link here.