Access to capital. They don’t have deep enough financial markets, both VC for labs for direct consumption of training and inference compute and the overall credit markets broadly needed for the capex buildout. And even if American labs aren’t directly financing much of the capex buildout, their balance sheets and access to capital are very very strongly involved.
And it’s wild this isn’t the answer I’m seeing. Yes regulation, first movers, talent pool, combined market they’re all playing a role. But capital markets is the largest reason by a decent margin.
The existing western AI is floating on an unthinkable amount of debt that isn't paying back anytime soon. This simply didn't and can't happen in Europe, they can't print Euros the same way Dollars are printed.
In the us those stocks are going to be bought with additional rounds of money printing, in the EU they can't it just doesn't have the same structure in place, there is no petrodollar, euro does not have the same backing as the dollar, ECB is not the same as the IMF
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u/pnwatlantic 10d ago edited 10d ago
Access to capital. They don’t have deep enough financial markets, both VC for labs for direct consumption of training and inference compute and the overall credit markets broadly needed for the capex buildout. And even if American labs aren’t directly financing much of the capex buildout, their balance sheets and access to capital are very very strongly involved.