5 March 2025, 11:22

By David Kirichenko

“We are back in the race,” French President Emmanuel Macron declared on February 10 at an AI summit in Paris, signaling Europe’s growing ambitions in the global AI race.

When former European Central Bank President Mario Draghi released his assessment of the continent’s competitive decline, few believed Europe stood a chance to catch up with the US tech giants in AI. DeepSeek’s recent model release questions assumptions about US dominance – and is making Europeans optimistic that they can capitalize on being second movers by focusing on efficiency and ethics.

However, Europe faces two major risks: over-dependence on Chinese technology and regulatory hurdles that could stifle its own AI industry.

Former European Council President Donald Tusk and current Polish prime minister recently posted on X: “The revolt against regulation is inevitable! Whether someone in the EU likes it or not. The time is now!” His statement reflects growing frustration within the bloc over burdensome regulation, that some fear could slow innovation.

How AI technology develops will be key. DeepSeek’s success illustrates how significant progress in AI can be achieved with efficient resource utilization rather than astronomical budgets. Unlike its Western counterparts, DeepSeek didn’t reinvent the wheel—it refined it. The Chinese company’s innovation didn’t require unlimited budgets and billions of euros.

The success of open-source models like DeepSeek’s R1 also challenges Western corporations that rely on closed, proprietary systems. “It should be no surprise that our big tech firms are at risk of being surpassed in A.I. innovation by foreign competitors,” wrote Lina Khan, former chair of the FTC under the Biden administration.

"Europe's lagging AI industry isn't........

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