It's not a lack of local talent. It's a combination of two governance problems:
1. Europe has no large data centers. It has no such datacenters because the Green movement is much more powerful in Europe than in America, and they have systematically blocked the expansion of gas turbine power in favor of over-builds of renewables. The result is Germany having the most expensive electricity in the world. It just isn't affordable to train an LLM in the EU. Notice how Elon Musk has imported gas turbines from around the world to power the xAI datacenter; that just wouldn't be allowed in the EU.
But, still, a German company could do so using US datacenters. Mistral in France has probably done it this way. But then you hit:
2. Copyright laws in Europe are more restrictive. Even in the US it's very unclear whether training an LLM on copyrighted works is actually legal, but the US courts are fairly efficient and US law has the concept of fair use, which is flexible enough to give them the leeway to decide it's legal. In Europe the fair use equivalents are either more restrictive or don't exist at all, and courts follow the local culture of being much less business friendly, so it's much riskier to attempt this. The EU as a set of institutions is much more in hoc to the press than people realize, and MUCH more so than US administrations are. They regularly side with copyright holders over tech companies in disputes in a mostly successful attempt to curry positive PR for the EU project.
It won't win me any friends on HN but both of these factors boil down to a lack of a strong Republican Party equivalent in Europe. I don't think Americans appreciate the extent to which their economic success is dependent on the strength of the Republicans, and they really should. If American conservatism collapsed or was taken over by the left, as has happened in parts of Europe, you'd be seeing the EU-ification of America very quickly.
1. Europe has no large data centers. It has no such datacenters because the Green movement is much more powerful in Europe than in America, and they have systematically blocked the expansion of gas turbine power in favor of over-builds of renewables. The result is Germany having the most expensive electricity in the world. It just isn't affordable to train an LLM in the EU. Notice how Elon Musk has imported gas turbines from around the world to power the xAI datacenter; that just wouldn't be allowed in the EU.
But, still, a German company could do so using US datacenters. Mistral in France has probably done it this way. But then you hit:
2. Copyright laws in Europe are more restrictive. Even in the US it's very unclear whether training an LLM on copyrighted works is actually legal, but the US courts are fairly efficient and US law has the concept of fair use, which is flexible enough to give them the leeway to decide it's legal. In Europe the fair use equivalents are either more restrictive or don't exist at all, and courts follow the local culture of being much less business friendly, so it's much riskier to attempt this. The EU as a set of institutions is much more in hoc to the press than people realize, and MUCH more so than US administrations are. They regularly side with copyright holders over tech companies in disputes in a mostly successful attempt to curry positive PR for the EU project.
It won't win me any friends on HN but both of these factors boil down to a lack of a strong Republican Party equivalent in Europe. I don't think Americans appreciate the extent to which their economic success is dependent on the strength of the Republicans, and they really should. If American conservatism collapsed or was taken over by the left, as has happened in parts of Europe, you'd be seeing the EU-ification of America very quickly.