Care to elaborate why you consider this an absolute must? I don't see why, say, France can't build an "AI valley" somewhere near to on of their nuclear power plants and commit to provide X amount of energy for some fixed price for a decade. To me the main reasons for not building top AI labs with frontier models in EU seems to be:
- Venture money is not there (or people controlling the money are not on board to invest into such labs).
- Weak political will from countries who could do that to actually go for it.
- Top scientist who could work on it choosing to go for much higher payouts in the US.
One single frontier computing cluster costs some €30-40B initially and becomes virtually worth zero every four years. That’s the equivalent of France’s full-year VC market for all industries combined times three. A single Member State, already indebted far beyond sustainable limits, cannot subsidize expensive, long-term 40bn€ hardware risks from its national budget more than 33 times without both falling foul of state aid rules and blowing up the debt crisis even more seriously than it already is.
The three factors you mention, missing VCs, political reluctance, and brain drain, are by-products of exactly these fragmented fiscal structures. European capital is not missing; it is frozen at 33T€ (roughly) in risk-averse national bank deposits and Member State pension regulations instead of in one unified Capital Markets Union to pay for high risks related to enormous tech bets. Similarly, leading researchers are not looking to work on a better salary but for liquid equity, which is not available at the high valuations seen in the NASDAQ through deeply integrated public markets.
With insufficient scale for an entire continent in finance, even the best AI valley in a single country will hit the wall much faster than a US hyper-scaler investing greater amounts in CAPEX in one single quarter than every member state treasury.
Money flows globally. The question is why are investors choosing not to invest as much in Europe?
Access to money isn't the issue.
EU needs to meet their own demand, the US wants to be the global provider.
Isn't it to be the globally dominant provider of such a service? Everything else is in service of that goal.
After all, what else than governments and corporations will be left after the rest of us poors will inevitably be priced out of the economy?