The European Union is making a bold move in the artificial intelligence race, allocating €200 billion to boost its AI industry and compete with the thriving ecosystems of the United States and China. European Commission President Ursula von der Leyen dismissed the idea that Europe is lagging behind, insisting that the AI race is far from over.

The announcement, made at the Paris AI Summit hosted by French President Emmanuel Macron, was met with enthusiasm by start-ups at the Station F incubator in Paris. Many believe this investment will help European companies develop advanced AI systems, especially after the rise of major chatbots like ChatGPT and China’s DeepSeek.

However, concerns remain that Europe’s strict AI regulations could hinder innovation, with some experts urging closer collaboration with American companies rather than rigid independence. Meanwhile, the United Kingdom and the United States declined to sign the summit’s ethical AI governance declaration, raising further questions about international cooperation. For now, it remains to be seen whether Europe’s big bet on AI will pay off.