Oh they don't flee, they just don't bother to start new ones in the EU.
Which of the new AI labs is setup in EU?
Stability? Midjourney? Anthropic? Cohere? Every single one is either in the US or UK. LLM companies deal with huge legal uncertainties, especially around data and privacy. Hence investors are reluctant to fund any in the EU, and potential founders are deterred. This is all legacy of the GDPR and the 'regulatory superpower' mindset that the EU deluded itself into.
The only new wave AI company from the EU is DeepL, which is going to face really really intense competition from LLMs.
I have no idea why would you claim that with the introduction of GDPR Europe lost on tech. By tech I mean the SV industry, there are many other technologies out there.
Anyway, why all the "tech" is in SV? Do they have GDPR in the other states?
Which of the new AI labs is setup in EU?
Stability? Midjourney? Anthropic? Cohere? Every single one is either in the US or UK. LLM companies deal with huge legal uncertainties, especially around data and privacy. Hence investors are reluctant to fund any in the EU, and potential founders are deterred. This is all legacy of the GDPR and the 'regulatory superpower' mindset that the EU deluded itself into.
The only new wave AI company from the EU is DeepL, which is going to face really really intense competition from LLMs.