You watch the OpenAI launch videos and its a surprising variety of Europeans accents talking about all the value they're creating in the US, instead of back home, simply due to the more favorable business/investment policies of the US.
My pet theory is, outside of the silly regulatory stance, the real reason Europe can never compete in each wave of tech (mainframe > pc > internet > mobile > social > AI > etc.) is government pension systems hoovering up all private capital and investing it into european governments (bonds) instead of european businesses (equities).
Centralizing the financial assets of an entire country, subjecting it to the whims of politics thus requiring it be invested it into extremely low risk bonds instead of a larger portion in European equity indexes or even a tiny portion in venture capital has created this situation: https://i.redd.it/fxks3skmvt4e1.png
Yes, a vast majority of VC funds lose money. Hence why it's bucketed in 'alternatives' and never a major part of pension portfolios. But the small group of winners literally create the future tax base to fund the social welfare system to continue existing (not to mention the future military tech which it turns out is useful when your neighbors get hostile). Not taking the risk means you never get the reward.
If Europe put even 1-2% of their $5T in pension assets into venture...even grossly mismanaged Softbank style...I find it hard to imagine you wouldn't accidentally create a few $100+ Billion companies in 10-20 years. More important would be creating the startup ecosystem for taking the rest of the worlds capital into these ventures as a multiplier.