In the face of global tensions, Europe has a golden opportunity to become a global AI powerhouse and supercharge its economy. But, Nessim-Sariel Gaon, Co-Founder and Managing Partner at LIAN Group, believes that’s only possible if policymakers can overcome barriers and act fast, as he explains. 

We’ve seen a flurry of AI-focused policies from US administrations past and present. Whether it’s Biden’s cap on American-designed GPU exports or Trump’s Stargate project, clearly, the US wants to innovate and keep a tight grip on AI solutions. It’s full steam ahead on AI across the pond; now it’s time for the EU to do the same.

While it’s true that many EU countries would be exempt from Biden’s chip export plans, the policy decision should be a firm wake-up call for innovation across the continent. To be candid, we’ve been too sluggish for too long – what we’re missing out on here is a fantastic opportunity to become a global AI power.

It’s Europe’s time

In light of Biden’s chip caps, Europe is staring at an open goal to cement itself as a key player within the wider GPU and AI supply chains and secure a chip stockpile. After all, the continent is home to some of the most impressive enterprises across the world, with no shortage of brilliant minds and entrepreneurial spirit. To score, though, policymakers must take action now.

Crucially, the EU must remove all barriers to innovation. The truth is that momentum is currently with other global players. The US and China are going head-to-head in the global AI battle and taking giant tech leaps while European firms get tied up in a web of complex legislation, risk assessments and bureaucracy.

In the EU, firms are deterred by regulations that look at all new AI technologies in terms of how much risk they pose, which does little to inspire the experimental, iterative mindset needed to achieve major technological breakthroughs. The most established AI innovators, as well as emerging startups, are begging for breathing space. They need an environment where they can learn through trial and error, but the EU’s current risk-focused laws are pushing them away.

By discouraging tech firms from driving AI progress on the continent, these current rules are also tying up investment. Over the last few months, we have seen industry giants announcing mammoth investments into countries across the world – Microsoft has pledged to plough billions of dollars into the US and India, while Oracle is gearing up to flow money into Malaysia.

As I said, the EU is a breeding ground for business success, yet it doesn’t seem to come into consideration; it’s undeniable that current regulations are partly to blame. Put simply, the EU must show that it’s open for business.

Stop, collaborate and listen

The good news is that policymakers have more than one tool they can wield to get this job done. In addition to enacting a regulation shift, the EU must visibly collaborate with the sector wherever possible. I’m talking about taking a 360-degree view and joining forces with private firms, academics, industry bodies, and educational institutions to make maximum impact.

Perhaps it should even cast an eye to the US, where the Stargate Project – a partnership between the US Government, OpenAI, Oracle and SoftBank – promises to inject $500 billion into AI infrastructure across the country.

This collaborative approach will be key to powering progress across Europe and unlocking vital private funding. If we get this right, we could propel Europe’s semiconductor industry to new heights and cement our place in the AI supply chain.

Plus, as the emergence of DeepSeek has just demonstrated, the AI market is wide open to new players. Despite the back and forth over how much compute power its LLM required to get up and running, there’s no denying its shock arrival unsettled some of the sector giants and showed once and for all that there are extra seats to be had at the AI table.

But the motivations for catalysing innovation and entering the chip supply chain don’t end there; there are several reasons why the EU should act.

Firstly, by bringing new actors in, we could effectively diversify the GPU supply chain and ease the strain it is currently under.

As AI technologies become more sophisticated, they will require more power and more advanced, cutting-edge GPUs. Given that AI startups continue to emerge and projects by the biggest market titans are growing grander in scale, it makes sense that chips are fast becoming sought-after commodities.

As a result, pressure on designers, manufacturers, raw material producers and machine makers is steadily increasing, and GPUs are sometimes in short supply. Now that the US is restricting some of its crucial players, taking up positions in and diversifying the supply chain to increase access to these chips should be a no-brainer for the EU.

Secondly, we’re staring at an opportunity to secure AI sovereignty. Biden’s chip policy was borne partly out of a desire to control the sector and keep AI technologies out of certain hands, and the EU must keep these factors in mind. If only to secure future national security and defence capabilities, it’s time to unleash AI progress. The EU must become a self-sufficient hub for AI innovation.

There was a lot of doom and gloom around Biden’s chip cap announcement, but now is not the time for cynicism. In fact, quite the opposite – Biden’s chip controls should mark a firm line in the sand and galvanise action across the continent.

Early signs of progress

Fortunately, the commission is showing early signs of adopting this approach. At the recent AI Action Summit in Paris, Ursula von der Leyen pledged to mobilise €200 billion worth of funding for AI, while Macron made his own headlines by revealing plans to plough €109 billion into AI infrastructure across France.

These announcements are a brilliant step in the right direction, but now we must see EU leaders turn the talk into action and ensure AI firms can secure the power, chips and infrastructure they need to drive AI progress.

We’re staring at an open opportunity for other players to muscle their way into the global AI supply chain, and the EU could be front and centre in the broadening of the competition. AI prowess across the bloc could be just around the corner; policymakers must act, and they must do it fast.