[hnlmorg]

> Where are their datacenter scale computing companies

There are loads. OVH and BT for example. Both of which predate AWS and GCP.

> How many decades did it take for that to arrive there?

Less time than the US. We also have, in general, faster internet at cheaper prices and better rural connectivity too.

To be clear, I’m not suggesting Europe is better than the US. Just stating that this “innovation could only happen in the US” meme is bullshit.

> It will be the same story with AI.

I literally just said I work for an AI tech company in Europe. And my company is hardly an isolated case.

> European developer brain drain will continue with the brightest minds coming to America.

You do realise that London, Berlin and other European tech hubs have their fair share of talented engineers who have moved to that country for work too?

America might have Silicon Valley but it’s hardly the only tech hub in the world.

[oytis]

> We also have, in general, faster internet at cheaper prices and better rural connectivity too.

What country are you talking about? Definitely not Germany.

> America might have Silicon Valley but it’s hardly the only tech hub in the world.

Berlin startup scene is a joke compared to the Silicon Valley though. Cambridge, London, Zürich, maybe Munich I would agree to a certain degree - but not Berlin. The rule of thumb is that it's better outside of EU though.

[carom]

OVH is a hosting company. I am not talking about hosting. Where are the companies with knowledge on how to deploy data center scale compute jobs? Where are the pioneers in this?

That knowledge exists now in Europe, but there was easily a lost decade in terms of capability. This is the price. Similar will happen in AI and you will be stuck relying on American products. I hope for your sake that I am wrong.

[hnlmorg]

> That knowledge exists now in Europe, but there was easily a lost decade in terms of capability.

You keep saying this but I’m not seeing any evidence it’s true. There have always been plenty of companies in Europe that have had data centre scale compute too (plus managing a data centre requires that level of understanding as well so I don’t agree with you dismissing OVH.

Plus you keep saying it’s taken a decade for the EU to catch up and on those timescales it would put things before GDPR et al. Thus EU legislation would have no impact even if your point was true.

> Similar will happen in AI and you will be stuck relying on American products.

At risk of sounding repetitive: I work for a European AI firm.

We actually have a lot of American clients — so the exact inverse of the point you’re making.

[carom]

This is a fairly common analysis.

https://www.mckinsey.com/capabilities/strategy-and-corporate...

[hnlmorg]

This is the key part:

> Although Europe has many high-performing companies, in aggregate European companies underperform relative to those in other major regions: they are growing more slowly, creating lower returns, and investing less in R&D than their US counterparts.

which is exactly what I’ve been saying. There are plenty of high performing companies in Europe, we just aren’t as aggressive in chasing growth for growths sake.

If you want to ask why that is, then I’d argue it’s more a cultural thing than it is to do with legislation.

Should that culture change? Personally I’d rather it didn’t. Personally I think America needs to change to become more customer focused because a lot of American businesses are really shitty to deal with.

I get this point will be an unpopular opinion on a VC forum like HN. But it just goes to demonstrate that the situation isn’t so black and white as you’ve been making out.

[dlkf]

> OVH and BT for example. Both of which predate AWS and GCP.

How is this not an own goal? These companies had a head start and they still lost. Not by a little, but by such a staggering margin that AWS does two OOMs more revenue.

> I literally just said I work for an AI tech company in Europe.

The argument is not ”there are no AI companies in Europe.” The argument is ”there are no competitive AI companies in Europe.” The only one I can think of is DeepMind, and they are A) English (no longer EU) and B) were acquired by Google ten years ago.

What are these European tech companies that are competitive with Nvidia, OpenAI, Google, etc? I’d like to learn more.

> You do realise that London, Berlin and other European tech hubs have their fair share of talented engineers who have moved to that country for work too?

A lot of them work for subsidiaries of American companies.

[hnlmorg]

> How is this not an own goal? These companies had a head start and they still lost.

They’re hugely successful corporations. Saying they’ve “lost” is a tad ridiculous.

Plus monopolies are bad for innovation so you could argue that Europe has a healthier ecosystem because it is tougher on monopolies than America.

> The argument is not ”there are no AI companies in Europe.” The argument is ”there are no competitive AI companies in Europe.”

You phrase that like it was a quote but in fact it wasn’t. The point being argued was that AI start ups couldn’t exist and I demonstrated they could.

Europe is also a hotspot of AI research:

https://odsc.medium.com/top-ten-european-ai-research-labs-fo...

> The only one I can think of is DeepMind, and they are A) English (no longer EU) and B) were acquired by Google ten years ago.

England was in the EU 10 years ago, EU legislations were carried over to English law after “Brexit” and the fact that they were good enough to be bought by Google also demonstrates that European companies can be seen as a threat.

> A lot of them work for subsidiaries of American companies.

And a lot of them don’t. I had my worked for a single American subsidiary in my 20 years of experience in Europe. Same is true for a lot of my friends too.

I really do get fed up with how some Americans believe it’s impossible that any other country could be successful.

[dlkf]

> They’re hugely successful corporations. Saying they’ve “lost” is a tad ridiculous.

Let’s quantify it so it’s not ridiculous. Since getting their head start, they have ”lost” about 90% of total market share to American companies who are doing a better job. And this is before the new transfer framework that cane out this month. What is the value prop of OVH without regulatory capture?

> Europe is also a hotspot of AI research

This is absolutely true. Amsterdam for example produces outstanding ML research. But where do their freshly minted phds go? American companies!

> I really do get fed up with how some Americans believe it’s impossible that any other country could be successful.

For what it’s worth, I live in northern Europe. As you point out, European universities are great. They are an AI research hotbed and they produce highly capable undergrads. But this clearly isn’t translating into world class tech companies, and we should ask ourselves why.

[hnlmorg]

> Let’s quantify it so it’s not ridiculous. Since getting their head start, they have ”lost” about 90% of total market share to American companies who are doing a better job. And this is before the new transfer framework that cane out this month. What is the value prop of OVH without regulatory capture?

This is a different argument to the one originally pitched though. And you cannot just assume the reason OVH hadn’t exploded like AWS did was due to EU regulation.

> But where do their freshly minted phds go? American companies

Again, I work for a European AI tech firm.

> But this clearly isn’t translating into world class tech companies, and we should ask ourselves why.

I think it is. I just think European tech firms are generally happier to grow organically. I think it’s more a case of different cultures. America is all about growth above all else. Whereas Europe is often more about user experience. European firms are often less aggressive at advertising outside of Europe too (maybe that’s a language barrier?)

I do honestly think the European tech market is healthy. It’s just different to the US market. The problem is the American school of capitalism is all about market dominance whereas European companies seem a little less obsessed with that. But that doesn’t mean Europe isn’t doing some exceedingly good work.

As a European, I value the fact that we have such a vibrant ecosystem.