U.S. model upgrades are pushing AI startups to move fast – its unclear if Europe can keep up

▤ Summary

The article explains how rapid model changes from OpenAI and Anthropic are forcing AI startups to move quickly or fall behind. It argues that Europe’s best chance is in the application layer, where companies build practical tools on top of foundation models. It highlights startups such as Lovable, Sana, Synthesia, and ElevenLabs as examples of application-focused AI businesses. The piece also notes that U.S. startups attract most of the capital while European companies face a more fragmented and cautious funding environment. It concludes that speed, iteration, and access to capital are now the main advantages in the AI market.

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