Costs don't scale linearly with size when you're a tech company that doesn't make physical objects, so large tech companies are insanely profitable because thei

Costs don't scale linearly with size when you're a tech company that doesn't make physical objects, so large tech companies are insanely profitable because their revenue goes up a lot faster than their costs as their grow. Even small companies can raise a ton of funding if investors think they have the potential to become very big. Some of this money trickles down to the engineers. It's a lot easier for US companies to become large because the domestic market is huge and there is a common language and regulatory framework. The EU does have a common market but there are still more language/regulatory barriers to expansion than in the US. The EU is also much poorer than the US. France has a lower GDP per capita than Alabama, and they are one of the wealthier EU states. This means it's harder to make money selling to European consumers.