by Thomas Wash | PDF
The European Union is seeking a place at the starting line of the AI race as it attempts to catch up with the United States and China. According to the latest Competitiveness Report, not a single EU company founded in the past 50 years has organically reached a market capitalization exceeding 100 billion EUR ($117 billion). This stands in sharp contrast to the US, which has produced multiple trillion-dollar firms, and China, where companies have achieved similar scale before encountering regulatory constraints.
The EU is now trying to reverse this trajectory through a sweeping industrial policy agenda focused on strategic technologies and supply chain resilience. In this report, we examine how the EU is leveraging its size to position itself as a sovereign AI power, while assessing its structural weaknesses and the policy adjustments required to meet rising demand. We also explore the broader market implications and the role AI may play as Europe seeks to establish itself as a more compelling destination for global capital.