Can we catch up with China and the United States?, Crazy AI! Paris and London compete for the European Artificial Intelligence Center, UK | Artificial Intelligence | Europe
In the current wave of artificial intelligence sparked by ChatGPT, the two major economies in Europe, the UK and France, are fiercely competing for leadership in the AI center.
Last week, the largest technology summit in France, Vivatech, was held in Paris, attracting over 150000 people to participate on-site, with artificial intelligence becoming the biggest highlight. Whether from startups, mature technology companies, or the beauty and banking industries, "artificial intelligence is on everyone's lips" among the attendees.
French President Macron is personally promoting France to become the artificial intelligence center of Europe. He said on Vivatech, "I believe France ranks first in the field of artificial intelligence on the European continent, and we must accelerate our pace."
Recently, a start-up company in Paris, founded only four weeks ago, announced that it has received over $100 million in seed funding to build large-scale language models and generative AI behind applications like ChatGPT. The founding members of this French company called Mistral Artificial Intelligence come from DeepMind, a subsidiary of Google, and Meta, the parent company of Facebook. CEO Mensch has worked at DeepMind's Paris office, while the other two co founders have worked at Meta's AI laboratory in Paris.
Providing funding to such a young startup without any clients is a huge adventure, but the French have projected their love for adventure into this promising future.
France will "crazily invest" in the AI field
Macron stated that France will invest "crazily" in the training and research of artificial intelligence. He said, "France is in a favorable position in the field of artificial intelligence because it can acquire talent and has many startups in the field of artificial intelligence technology."
Mistral AI is just one of them. The company is expected to launch its first AI product next year, with a current valuation of over 200 million euros. Mistral hopes to use this funding to build a "world-class team" and establish an open source model.
Currently, the United States and China still hold technological and scale advantages in the global competition in the field of artificial intelligence. France hopes to narrow the gap and build two or three "global giants" in the field of AI technology by investing more in AI.
Within Europe, France also faces fierce competition in the field of artificial intelligence, especially challenges from the UK. Last week, British Prime Minister Sunak boldly proposed positioning London as the technology center of the AI industry at London Technology Week and urged industry practitioners to seize the opportunity of artificial intelligence.
Although the technology and market size are not as large as those in the United States, Europe is taking a leading position in artificial intelligence regulation. Last week, the EU's AI bill was passed by the European Parliament, clearing the main obstacles for its official entry into force. This is also the first regulation worldwide to extensively regulate artificial intelligence.
The UK and France are also competing for the high ground in AI security regulation. The UK has planned to hold a global artificial intelligence security summit in the second half of this year and discuss how to mitigate these risks through international collaborative actions. In his speech at London Technology Week last week, Sunak stated, "We must not only make the UK a 'home of knowledge' for AI, but also a 'geographical home' for AI security regulation."
The UK hopes to balance technological development and ethics while placing the AI technology industry at the core of economic development. In March of this year, the UK chose to allocate the regulatory responsibility of AI to multiple different institutions, rather than creating a new institution specifically responsible for regulating artificial intelligence technology.
France has also stated that although there is competition among countries, the development of artificial intelligence technology requires coordinated global regulation, including cooperation with the UK and the US. "I believe that fair competition between the United States and Europe, as well as cooperation on some key equipment, are beneficial for both parties." French Finance Minister Bruno Le Maire said during Vivatech, "In terms of regulation, I believe it is crucial to have in-depth discussions with the United States on the best way to regulate artificial intelligence."
Investing in the UK or France?
Industry insiders have different opinions on the respective advantages of the UK and France in the field of artificial intelligence, as well as how Chinese AI companies should make choices when investing in Europe.
"I think Paris' advantages are significant, first and foremost because France has at least two AI related plans, which are heavily subsidized by the government, and Macron personally leads the development of artificial intelligence. France's emphasis on technology has a historical heritage, and its scientific education is also world-class, especially in mathematics. In recent years, France has invested heavily in cloud computing and quantum technology, and has given birth to several large European IT service companies, such as Kaijie Consulting, financial service enterprise sopra, and Yuanxun."
Dai Pu believes that the UK is not completely without advantages, especially in terms of attractive tax and regulatory frameworks, and is very suitable for the development of financial services ecosystems and other fields. However, Brexit also makes it difficult for the government to obtain funding from the EU.
"France can undoubtedly obtain more funding from the EU level, which highlights its advantages and will further expand," he told First Financial reporters. He also mentioned Germany, "Germany is close to perfection in traditional technology and engineering manufacturing, but has no special attraction for the development of new technologies."
Zhang Junyi, Managing Partner of New York based consulting firm Aowei Consulting, told First Financial reporters, "The UK and France have different advantages. For example, in terms of language, the UK's advantage is definitely more significant, and compared to France, there are more technical students studying in China. However, Brexit is indeed a 'hard hit' for investors."
Musk may have a clear inclination
At present, giants including technology tycoon Elon Musk have also stated that they will consider investing and cooperating in more technology fields in France. After meeting with Musk during the Vivatech conference, Macron posted a group photo of the two on Twitter and wrote in English, "Let's work together."
Last Friday, Musk also had lunch with Bernard Arnault, CEO of French luxury goods giant LVMH Group, at the Cheval Blanc restaurant under the luxury goods group. The combined total assets of the two world's richest people exceed $426 billion. Musk's mother Mayer and Arnold's two sons also attended lunch together.
"If France wants to establish a foothold in the field of artificial intelligence, it needs to use this technology to build in its powerful economic sectors, such as the biotechnology or luxury goods industries," an investor familiar with France told First Financial News.
"After a comprehensive evaluation of the investment factors in London and Paris, we are increasingly inclined to invest in France, mainly considering that the overall business environment in France seems to be more friendly to Chinese companies," said the founder of a Chinese AI data technology company that is considering investing in Europe to a reporter from First Financial
The French Agency for Commerce and Investment recently released a report on foreign investment in France to create employment, which shows that France is at the forefront of attracting research and innovation in Europe. In 2022, France attracted 144 R&D center projects from around the world in the manufacturing sector, a year-on-year increase of 8%. The report also stated that 64% of foreign investors believe that France is more attractive than other European countries in terms of technological leadership.
"France is globally recognized as a place of innovation, and R&D and innovation activities play an important role in the French economy. One fifth of foreign enterprises' R&D investment in Europe is in France." Pascal Cagney, Chairman of the Board of Directors of the French Agency for Commerce and Investment and Ambassador for International Investment of France, recently stated, "Global technology industry giants are increasing their investment in France year by year, which will also promote the transformation of the French economy."
It is reported that China has also continued to become France's largest source of Asian investment.
However, some industry insiders have pointed out that France's development in emerging technologies such as AI is constrained by some external factors. "France is still dominated by large state-owned enterprises in many fields, and there may still be some bureaucratic phenomena. The UK will be better in these areas," said Zhang Junxian, a partner at PwC China, to a reporter from First Financial.