Europe’s AI Battle Heats Up: OpenAI Responds to DeepSeek and US Tech Moves, While Europe Pushes for AI Autonomy 💻🌍

The European Union begins enforcing the AI Act sanctions, while Silicon Valley and China face off in a tech race that’s reshaping the AI landscape.

This week, Europe has begun implementing the first sanctions under the AI Act, the new regulation aimed at curbing abusive practices in artificial intelligence. While the European Union allocates €52 million to develop OpenEuroLLM, a project designed to boost open-source models and compete with Silicon Valley and China, on the other side of the Atlantic, a full-scale technological battle is underway. The arrival of the Chinese company DeepSeek has shaken the sector, and in recent days, it has forced OpenAI to make key announcements that could redefine the AI market. Once again, behind the initial doom and gloom, the logic of healthy competition prevails, driving down costs, reducing energy consumption, and with OpenAI's latest releases, benefiting all users of the popular ChatGPT, including the free ones.

o3-mini and Deep Research: OpenAI’s Strategic Response

OpenAI has swiftly responded to DeepSeek’s rise. Led by Sam Altman, the company has announced the launch of o3-mini, a new AI model with reasoning capabilities, now available for free to all ChatGPT users. This move is a direct challenge to DeepSeek, which had gained a significant user share in recent weeks due to its strategy of offering free models.

“We want to democratize AI and make the best technology accessible to everyone,” said Sam Altman during the presentation of the new model. With this move, OpenAI aims to prevent DeepSeek’s high-performance R1 model from becoming a serious threat to its leadership.

In addition to o3-mini, OpenAI has unveiled Deep Research, a project focused on specialized AI agents. These new systems, designed for businesses and professionals, will offer advanced features tailored to specific tasks. While pricing details are yet to be revealed, the service is expected to be high-end and costly.

Microsoft Steps Back, SoftBank Bets on OpenAI

The new landscape has also sparked tensions in strategic alliances. Microsoft, once OpenAI's primary partner, has begun distancing itself and reaffirmed its commitment to a diversified AI model. Satya Nadella’s company has announced that it will continue investing in artificial intelligence but will maintain its collaboration strategy with other tech companies, including Meta and Anthropic.

Meanwhile, SoftBank has entered the scene with a record investment of up to $40 billion in OpenAI. This move could solidify Altman’s company as a leading player in the generative AI sector. SoftBank’s investment will not only support the development of o3-mini and Deep Research but also expand OpenAI’s applications into new sectors such as robotics and national security.

Trump and the Tech War

The impact of DeepSeek has been so strong that it has reached the White House. Donald Trump, who has once again set the technological agenda, declared that the US government “cannot afford to fall behind” and advocated for massive “investment in AI.” In this context, the Stargate project, a half-trillion-dollar initiative to accelerate AI and supercomputing research, has gained new relevance.

Trump called the arrival of DeepSeek a “turning point” and stated that the US must respond with an even more aggressive strategy. This position has garnered support from various sectors but has also raised concerns about escalating tensions between the US and China in the tech arena.

OpenEuroLLM and AI Fines in Europe

Meanwhile, in Europe, the response has been different. This week, the AI Act regulations, which impose restrictions on abusive practices in the AI sector, began to take effect. This message runs counter to last week's announcement by Ursula von der Leyen, President of the European Commission, who seems eager to compete in the US-China tech rivalry by reviving Mario Draghi’s ambitious document. However, the good news has been the European Commission’s announcement of OpenEuroLLM, a plan to develop open-source language models that will enable Europe to have autonomous alternatives in AI and reduce its dependence on Silicon Valley and China.

According to Von der Leyen, “Europe cannot afford to fall behind in the AI race,” which is why she has pushed for a series of measures to strengthen the continent’s technological competitiveness. The Commission has allocated €52 million to this initiative, a figure that pales in comparison to what major tech companies invest—OpenAI spends this amount every 48 hours.

Pedro Sánchez and AI Research

Multidisciplinary AI researchers who denounced the unexplained cancellation of funding from Spain’s Ministry of Science, Innovation, and Universities are still awaiting a response to their demands. So far, two appeals have been submitted: one from the University of Zaragoza and another from the University of the Basque Country. Some media outlets have reported that Transparency is hiding the reasons for the suspension of funding due to “unforeseen circumstances.” Meanwhile, Spanish Prime Minister Pedro Sánchez once again criticized the “technocaste” and billionaire Elon Musk. “They do everything for the money, and the digital environment must be a public good,” he stated. The Prime Minister advocates for a “humanist” European technological alternative.

If 2024 was a year of major AI breakthroughs, 2025 seems set to be the year when language models, intelligent agents, and global tech governance become the epicenter of a new technological order.