Despite recent regulatory efforts, the EU faces a significant gap in AI development and infrastructure. The bloc must invest in research, foster partnerships, and strengthen its industrial base.
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| The bloc's struggle to produce leading companies in the global clean tech race is compounded by a fragmented capital market and a lack of coordinated industrial policy. Nvidia's CEO Jensen Huang calls for accelerated progress and strategic partnerships. Image Courtesy: NVIDIA |
Brussels, Belgium --- October 23, 2024:
The European Union, despite its early regulatory efforts in artificial intelligence (AI), is facing a growing gap in investment and development compared to the United States and China. This disparity, as highlighted by Nvidia CEO Jensen Huang, underscores the urgent need for the EU to accelerate its AI progress.
Huang's visit to Denmark to launch the new supercomputer, Gefion, serves as a stark reminder of the technological advancements being made elsewhere. The partnership between Nvidia, the Novo Nordisk Foundation, and Denmark's Export and Investment Fund showcases the potential for international collaboration in AI research and development. However, the EU as a whole must foster similar partnerships and investments to bridge the gap.
The EU's Digital Markets Act, while a crucial step in regulating Big Tech, is not sufficient to address the underlying challenges faced by European AI companies. Teresa Ribera, the EU's incoming antitrust chief, has pledged to intensify enforcement and protect smaller businesses from unfair acquisitions. Her focus on promoting competition and preventing "killer acquisitions" aligns with the EU's broader efforts to nurture domestic AI champions.
However, the EU's industrial strategy must go beyond regulatory measures. The bloc has struggled to produce leading companies in the global clean tech race, partly due to a fragmented capital market and a lack of coordinated industrial policy. Ribera's call for simplified rules for state aid and enforcement of foreign subsidies regulation is a step in the right direction, but more comprehensive reforms are needed.
The EU's recent decision to impose tariffs on imported Chinese electric vehicles (EVs) highlights the bloc's concerns about unfair competition from foreign-subsidized firms. While these measures are necessary to protect European industries, they must be accompanied by a broader strategic vision for the EU's future in the global EV market.
In conclusion, the EU's AI ambitions require a multifaceted approach. The bloc must invest in research and development, foster international partnerships, strengthen its industrial base, and adopt a more strategic approach to competition. By addressing these challenges, the EU can position itself as a global leader in AI and reap the economic and societal benefits that come with it.