Because an AI model developed in the EU will, by design, be compliant with EU data and AI regulations from day one, which makes it a strong selling point for companies looking to launch AI-powered products on the EU market?

Yes, regulatory compliance is a significant concern for software product design in the EU these days. But that's a good thing - it stops a lot of hare-brained ideas and abusive business models at the drafting phase. Also, from my own observation, the rules seem annoying at first, because they tend to shut down the most exciting ideas - but after a while you notice that this is because those ideas come with bad failure modes and bad second-order effects, and regulations are forcing you to actually consider them.