Europe looks to catch up with US in AI race at German digital summit

US President Donald Trump stated that investment in artificial intelligence (AI) is significantly benefiting the economy. However, he expressed concerns that overregulation could hinder the US's competitive edge against China in the AI sector.

Amazon has introduced a new Video Recaps feature on Prime Video that utilizes AI to summarize key plot points of shows with snippets and music. This feature is currently in beta and available to users in the US. It follows the launch of text-based AI recaps last year, enhancing the viewing experience by adding visual and audio elements.

Experts warn that reliance on foreign-made open models poses significant risks to the US supply chain and innovation in artificial intelligence. This dependency could hinder the country's competitive edge against China in the rapidly evolving tech landscape.

OpenAI has announced the launch of ChatGPT for Teachers, a specialized version of its AI chatbot aimed at K-12 educators and school districts. This service will be available for free to K-12 educators in the United States until June 2027, providing tools to enhance teaching and learning experiences.

The European Commission has initiated a Digital Markets Act (DMA) investigation into US hyperscalers, focusing on their market power in the cloud infrastructure sector. This move is part of the EU's strategy to secure a competitive digital landscape in Europe and ensure fair practices among major tech players.

The European Union has proposed updates to the General Data Protection Regulation (GDPR), which include simplifying cookie permission pop-ups. Additionally, there are plans to dilute the AI Act in response to pressure from the United States and major technology companies. This shift marks a significant change in the EU's regulatory stance towards tech giants, raising concerns about the protection of user data and the integrity of AI governance.

A CEIP study reveals that 87 of the top 100 Chinese AI researchers who were working in the US in 2019 continue their research at US universities or companies as of 2025. Despite some narratives from Silicon Valley executives portraying China as a competitor, the contributions of Chinese researchers remain significant in the US AI landscape.

The State of European Tech Report reveals that optimism in Europe's technology sector has reached a 10-year high, with the sector now valued at $4 trillion. The report emphasizes the importance of Europe defining its future independently, highlighting the need for innovation and investment in the region.