The decline of AI capabilities will accelerate as nations scramble to maintain dominance.

The decline of AI capabilities will accelerate as nations scramble to maintain dominance.



The race to develop and deploy advanced artificial intelligence (AI) models has become the latest fix for governments and tech companies around the world.

Just last month, Google invested €25 million in a new initiative to boost AI skills for Europeans, and partnered with the French government to set up a new AI-dedicated center in Paris.

At the same time, rival Microsoft announced a €3 billion investment in AI development in Germany.

On March 20, sources told the Financial Times that Germany's Aleph Alpha and two UK-based AI firms – Synthesia and Stalibii – are considering moving their headquarters abroad.

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According to reports, officials from Canada and the United Arab Emirates have approached the companies and tried to lure them out of the EU region. The sources said they were offered subsidies, relaxed tax regimes and a “light touch” regulation.

This comes as the European Union passed legislation on March 13 that sets the world's first comprehensive AI rules for the development and deployment of AI tools in the EU.

Jonas Androulis, founder and CEO of Aleph Alpha, told FTA that he was approached by companies outside the region and asked, “Oh, now all that scary legislation, you don't want to move your AI R&D company?

Cointelegraph contacted Aleph Alpha for additional comment on the impact of EU AI legislation.

Related: OpenAI hires French and Spanish news partners for AI chatbot training

The EU AI law has both positive and negative aspects for domestic technology companies, some say the regulations will hinder innovation in the region and others praise the implementation of the directives.

However, innovation doesn't stop there. On March 19, Denmark announced a partnership with Nvidia, the global leader in AI semiconductor chip manufacturing, to create the most advanced AI supercomputers in the country.

However, other regions around the world, such as the United States and the European Union, are starting to see major technology companies catch up with current AI leaders. In Asia, Singapore is aiming to become an AI hub by developing commercial AI models in local languages.

In the Middle East, OpenAI, the developer of popular chatbot Chat GPT, has been in talks with investors in the United Arab Emirates to develop its own semiconductor chip, as part of a separate deal with two companies in the country. The expansion of the Middle East.

Meanwhile, the government of Saudi Arabia is said to be considering a $40 billion investment fund in the AI ​​sector controlled by venture capital firm Andreessen Horowitz to make the country a top investor in the AI ​​space.

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