Day: February 11, 2025

Europe says it will ease regulations on artificial intelligence at a key AI summit in Paris on Feb. 11, 2025, that brought together the U.S. and other global tech giants and politicians. But some experts see bigger challenges stalling the bloc’s ambitions to be an AI heavyweight, from the need to pool resources to attracting more investment and talent.

After U.S. President Donald Trump’s massive Stargate investment project and China’s DeepSeek startup, Europe wants to get a share of the artificial intelligence pie. Among other announcements at the Paris summit, co-host French President Emmanuel Macron outlined plans for $113 billion in private AI investment.

The two-day summit underscored tensions between fears of too much AI regulation and not enough.

“At this moment, we face the extraordinary prospect of a new Industrial Revolution, one on par with the steam engine or Bessemer steel,” U.S. Vice President JD Vance told summit attendees Tuesday. “But it will never come to pass if overregulation deters innovators from taking the risks necessary to advance the ball.”

Macron, who’s been nicknamed France’s startup president, outlined caveats. He said advancing international governance of AI will enable the consolidation of trust, acceleration and innovation in order to set the rules for AI, which are necessary to move forward.

Currently, Europe’s AI industry lags behind those of the U.S. and China. But the right policies, some experts believe, can help close the gap.

“Europe really has pretty much everything else it needs to lead in AI or other complex technologies,” said Pierre Alexandre Balland, chief data scientist at the Center for European Policy Studies in Brussels. “The talent is absolutely incredible. … [T]he scale of the European economy is also huge … the education system. Essentially, we see a wind of change in the EU really led by France, and Emmanuel Macron is very much behind that.”

Beyond easing EU regulations, Balland sees bigger challenges — such as pooling European research and other resources, calling for investing pension funds to finance AI’s growth, and concentrating on a single AI hub in Europe.

“Paris is absolutely by far the leading AI ecosystem in Europe,” he said.

Alicia Garcia-Herrero, senior fellow at Brussels-based Bruegel policy institute, agreed France is leading the way. She believes Europe should narrow its goals — focusing on areas like AI applications for robotics.

“Can the AI make the EU more competitive? No doubt,” Garcia-Herrero said. “But I think there’s many other issues that need to be solved beyond AI. The most important one is having a single market.”

Paris summit organizers have also pushed for commitments on making AI more ethical, accessible and environmentally sustainable.
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Paris — U.S. Vice President JD Vance told Europeans on Tuesday their “massive” regulations on artificial intelligence could strangle the technology, and rejected content moderation as “authoritarian censorship.”

The mood on AI has shifted as the technology takes root, from one of concerns around safety to geopolitical competition, as countries jockey to nurture the next big AI giant.

Vance, setting out the Trump administration’s America First agenda, said the United States intended to remain the dominant force in AI and strongly opposed the European Union’s far tougher regulatory approach.

“We believe that excessive regulation of the AI sector could kill a transformative industry,” Vance told an AI summit of CEOs and heads of state in Paris.

“We feel very strongly that AI must remain free from ideological bias and that American AI will not be co-opted into a tool for authoritarian censorship,” he added.

Vance criticized the “massive regulations” created by the EU’s Digital Services Act, as well as Europe’s online privacy rules, known by the acronym GDPR, which he said meant endless legal compliance costs for smaller firms.

“Of course, we want to ensure the internet is a safe place, but it is one thing to prevent a predator from preying on a child on the internet, and it is something quite different to prevent a grown man or woman from accessing an opinion that the government thinks is misinformation,” he said.

European lawmakers last year approved the bloc’s AI Act, the world’s first comprehensive set of rules governing the technology.

Vance is leading the American delegation at the Paris summit.

Vance also appeared to take aim at China at a delicate moment for the U.S. technology sector.

Last month, Chinese startup DeepSeek freely distributed a powerful AI reasoning model that some said challenged U.S. technology leadership. It sent shares of American chip designer Nvidia down 17%.

“From CCTV to 5G equipment, we’re all familiar with cheap tech in the marketplace that’s been heavily subsidized and exported by authoritarian regimes,” Vance said.

But he said that “partnering with them means chaining your nation to an authoritarian master that seeks to infiltrate, dig in and seize your information infrastructure. Should a deal seem too good to be true? Just remember the old adage that we learned in Silicon Valley: if you aren’t paying for the product, you are the product.”

Vance did not mention DeepSeek by name. There has been no evidence of information being able to surreptitiously flow through the startup’s technology to China’s government, and the underlying code is freely available to use and view. However, some government organizations have reportedly banned DeepSeek’s use.

Speaking after Vance, French President Emmanuel Macron said that he was fully in favor of trimming red tape, but he stressed that regulation was still needed to ensure trust in AI, or people would end up rejecting it. “We need a trustworthy AI,” he said.

European Commission chief Ursula von der Leyen also said the EU would cut red tape and invest more in AI.

In a bilateral meeting, Vance and von der Leyen were also likely to discuss Trump’s substantial increase of tariffs on steel.

OpenAI CEO Sam Altman was expected to address the summit on Tuesday. A consortium led by Musk said on Monday it had offered $97.4 billion to buy the nonprofit controlling OpenAI.

Altman promptly posted on X: “no thank you but we will buy twitter for $9.74 billion if you want.”

The technology world has closely watched whether the Trump administration will ease recent antitrust enforcement that had seen the U.S. sue or investigate the industry’s biggest players.

Vance said the U.S. would champion American AI — which big players develop — he also said: “Our laws will keep Big Tech, little tech, and all other developers on a level playing field.”
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PARIS — Europe will invest an additional $51.5 billion to bolster the bloc’s artificial intelligence ambition, European Commission Ursula von der Leyen said on Tuesday.

It will come on top of the European AI Champions Initiative, that has already pledged 150 billion euros from providers, investors and industry, von der Leyen told the Paris AI Summit.

“Thereby we aim to mobilize a total of 200 billion euros for AI investments in Europe,” she said.

Von der Leyen said investments will focus on industrial and mission-critical technologies.

Companies which have signed up to the European AI Champions initiative, spearheaded by investment company General Catalyst, include Airbus, ASML, Siemens, Infineon, Philips, Mistral and Volkswagen.
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French President Emmanuel Macron wants Europe to become a leader in the artificial intelligence (AI) sector, he told a global summit of AI and political leaders in Paris Monday where he announced that France’s private sector has invested nearly $113 billion in French AI.

Financial investment is key to achieving the goal of Europe as an AI hub, Macron said in his remarks delivered in English at the Grand Palais.

He said the European bloc would also need to “adopt the Notre Dame strategy,” a reference to the lightning swift rebuilding of France’s famed Notre Dame cathedral in five years after a devastating 2019 fire, the result of simplified regulations and adherence to timelines.

“We showed the rest of the of the world that when we commit to a clear timeline, we can deliver,” the French leader said.

Henna Virkkunen, the European Union’s digital head, indicated that the EU is in agreement with simplifying regulations. The EU approved the AI Act last year, the world’s first extensive set of rules designed to regulate technology.

European countries want to ensure that they have a stake in the tech race against an aggressive U.S. and other emerging challengers. European Commission chief Ursula von der Leyen is scheduled to address the EU’s ability to compete in the tech world Tuesday.

Macron’s announcement that the French private sector will invest heavily in AI “reassured” Clem Delangue, CEO of Hugging Face, a U.S. company with French co-founders that is a hub for open-source AI, that there will be “ambitious” projects in France, according to Reuters.

Sundar Pichai, Google’s head, told the gathering that the shift to AI will be “the biggest of our lifetimes.”

However, such a big shift also comes with problems for the AI community. France had wanted the summit to adopt a non-binding text that AI would be inclusive and sustainable.

“We have the chance to democratize access [to a new technology] from the start,” Pichai told the summit.

Whether the U.S. will agree to that initiative is uncertain, considering the U.S. government’s recent moves to eliminate diversity, equity and inclusion (DEI) initiatives.

U.S. Vice President JD Vance is attending the summit and expected to deliver a speech on Tuesday. Other politicians expected Tuesday at the plenary session are Chinese Vice Premier Zhan Guoqing and Indian Prime Minister Narendra Modi. About 100 politicians are expected.

There are also other considerations with a shift to AI. The World Trade Organization says its calculations indicate that a “near universal adoption of AI … could increase trade by up to 14 percentage points” from what it is now but cautions that global “fragmentation” of regulations on AI technology and data flow could bring about the contraction of both trade and output.

A somewhat frightening side effect of AI technology is that it can replace the need for humans in some sectors.

International Labor Organization leader Gilbert Houngbo told the summit Monday that the jobs that AI can do, such as clerical work, are disproportionately held by women. According to current statistics, that development would likely widen the gender pay gap.
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A consortium led by Elon Musk said Monday it has offered $97.4 billion to buy the nonprofit that controls OpenAI, another salvo in the billionaire’s fight to block the artificial intelligence startup from transitioning to a for-profit firm.

Musk’s bid is likely to ratchet up longstanding tensions with OpenAI CEO Sam Altman over the future of the startup at the heart of a boom in generative AI technology. Altman on Monday promptly posted on X: “no thank you but we will buy twitter for $9.74 billion if you want.”

Musk cofounded OpenAI with Altman in 2015 as a nonprofit, but left before the company took off. He founded the competing AI startup xAI in 2023.

Musk, the CEO of Tesla and owner of tech and social media company X, is a close ally of President Donald Trump. He spent more than a quarter of a billion dollars to help elect Trump, and leads the Department of Government Efficiency, a new arm of the White House tasked with radically shrinking the federal bureaucracy. Musk recently criticized a $500 billion OpenAI-led project announced by Trump at the White House.

OpenAI is now trying to transition into a for-profit from a nonprofit entity, which it says is required to secure the capital needed for developing the best AI models.

Musk sued Altman and others in August last year, claiming they violated contract provisions by putting profit ahead of the public good in the push to advance AI. In November, he asked a U.S. district judge for a preliminary injunction blocking OpenAI from converting to a for-profit structure.

Musk’s lawsuit against OpenAI and Altman says the founders originally approached him to fund a nonprofit focused on developing AI to benefit humanity, but that it was now focused on making money.

“It’s time for OpenAI to return to the open-source, safety-focused force for good it once was,” Musk said in a statement Monday. “We will make sure that happens.”

Musk and OpenAI backer Microsoft did not immediately respond to requests for comment.

“Musk’s bid puts another wrinkle into OpenAI’s quest to remove the nonprofit’s control over its for-profit entity,” said Rose Chan Loui, executive director of the UCLA Law Center for Philanthropy and Nonprofits.

“This bid sets a marker for the valuation of the nonprofit’s economic interests,” she said. “If OpenAI values the nonprofit’s interests at less than what Musk is offering, then they would have to show why.”

The consortium led by Musk includes his AI startup xAI, Baron Capital Group, Valor Management, Atreides Management, Vy Fund III, Emanuel Capital Management, and Eight Partners.

XAI could merge with OpenAI following a deal, according to The Wall Street Journal which first reported Musk’s offer earlier Monday. XAI recently raised $6 billion from investors at a valuation of $40 billion, sources have told Reuters.

Throwing a wrench

“This (bid) is definitely throwing a wrench in things,” said Jonathan Macey, a Yale Law School professor specializing in corporate governance.

“The nonprofit is supposed to take money to do whatever good deeds, and if OpenAI prefers to sell it to somebody else for less money, it’s a concern for protecting the interests of the beneficiaries of the not-for-profit. If this was a public company, plaintiffs’ lawyers would justifiably be lining up down the block to sue that transaction.”

OpenAI was valued at $157 billion in its last funding round, cementing its status as one of the most valuable private companies in the world. SoftBank Group is in talks to lead a funding round of up to $40 billion in OpenAI at a valuation of $300 billion, including the new funds, Reuters reported in January.

Aside from any antitrust implications, a deal this size would need Musk and his consortium to raise enormous funds.

“Musk’s offer to buy OpenAI’s nonprofit should significantly complicate OpenAI’s current fundraising and the process of converting into a for-profit corporation,” said Gil Luria, analyst at D.A. Davidson.

“The offer seems to be backed by more credible investors … OpenAI may not be able to ignore it. It will be the fiduciary responsibility of OpenAI’s board to decide whether this is a better offer, which could call into question the offer from SoftBank.”

Musk’s stock in Tesla is valued at roughly $165 billion, according to LSEG data, but his leverage with banks is likely to be thin after his $44 billion buyout of the social media platform that was called Twitter in 2022.
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