European AI companies are massively relocating to the USA
The growing gap between Europe and global technology leaders in artificial intelligence is causing serious concern at the highest political level. Swedish Prime Minister Ulf Kristersson sharply criticized the EU’s current regulatory approach to AI technology development at the Techarena technology conference in Stockholm.
“If we don’t change the situation, Europe will indeed turn into a kind of museum compared to other parts of the world,” said Kristersson, pointing to the significant lag in European economic growth rates behind the US and China over the past two decades.
The Swedish Prime Minister’s speech came against the backdrop of large-scale investment initiatives by global players. Last month, US President Donald Trump announced private investments in AI worth $500 billion as part of the Stargate project. In response, French President Emmanuel Macron announced the attraction of 109 billion euros ($113.7 billion) in AI investments, including funds from foreign investors from the UAE, American and Canadian investment funds, as well as French companies Iliad, Orange, and Thales.
The European Commission, in turn, plans to mobilize 200 billion euros ($208.6 billion) for AI investments in Europe, but experts note that the problem lies not only in the amount of funding but also in the regulatory climate.
US Vice President JD Vance criticized the European approach at the Paris AI Action Summit: “To build trust, we need international regulatory regimes that foster AI technologies rather than stifle them. We want our European friends to look at this new frontier with optimism, not with fear.”
Of particular concern is the EU Artificial Intelligence Act (AI Act) that came into force this year – the first comprehensive set of rules aimed at protecting against AI-related risks. “We have companies struggling to use the latest technologies due to uncertainty in European legislation. Companies founded in Europe are moving to the US due to lack of access to capital. This is simply unacceptable,” emphasized the Swedish Prime Minister.
According to Kristersson, to compete in the new geopolitical context, Europe must become a place where business and innovation can thrive. This requires substantial reduction in regulation and ensuring broader access to capital and talent.
Experts note that the current situation could lead to long-term technological lag in Europe, especially in the context of accelerating global competition in AI. Without significant changes in the regulatory approach and increased investment attractiveness, the European technology sector risks losing competitiveness on the world stage.
