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I doubt it’s the end of AI access in Europe. Even if they do fine them 3% of global turnover, that’s probably a small enough fraction of their European revenue
by asdfasgasdgasdg 1mo ago
I doubt it’s the end of AI access in Europe. Even if they do fine them 3% of global turnover, that’s probably a small enough fraction of their European revenue that it’s worth the risk. After all if they drop European traffic it’s not like it’ll change their fixed costs, and the marginal cost to serve Europe is probably relatively small compared to their fixed costs.
I do think it’s most likely that they will end up fining the AI companies quite a bit under this act. It seems like a bit of a pattern with European legislation that disproportionately impacts American tech companies.
- satvikpendem 1mo agoPerhaps the fines themselves act as a de facto AI tax that some people have been trying to promote in the political sphere, and we'll see how successful it is.
- toenail 1mo agoFines escalate when there is no compliance.
- satvikpendem 1mo agoThen they'll just pull out eventually and save everyone the trouble.
- Gerard22Aug 1mo agoIt's a (successful?) lobbying attempt by Mistral. They are falling behind on tech and they want to win on another stupid EU law. You know what will happen next? There will be an exception carved in for "developing countries" ... like China.
- satvikpendem 1mo agoWhy would they, both the EU and Mistral specifically, want Chinese models? Isn't the (de facto, underlying) point of the act to raise up homegrown companies like Mistral?
- spiderfarmer 1mo agoIt’s how conspiracy theories work: find out who could theoretically profit, blame them and spread it as fact. It doesn’t have to stand up to scrutiny, if it sounds plausible “you told them like it is”.
- satvikpendem 1mo agoThat doesn't make any sense because Mistral wouldn't profit if Chinese models are allowed so not sure why the person above thinks the EU would add a China exemption.
- stymaar 1mo agoMistral is serving GLM in addition to their own models. But conspiracy theory don't have to make sense in the first place.
- Gerard22Aug 1mo ago"Mistral is serving GLM " ... "But conspiracy theory don't have to make sense". To me this looks like an example of broken logical thinking, no? :-)
- bestham 1mo agoI really oppose the notion that “European legislation … disproportionately impacts American tech companies”. US tech has a profound impact on the lives of everyday Europeans while the US has almost no checks and balances in place for the tech industry. Europeans are ought to be able decide how they want to live their lives and build a society. This must include deciding how much influence American tech companies shall be allowed to have by passing laws for Europe.
- spiderfarmer 1mo agoAlso, most US citizens want the same regulations as EU citizens, but only one of them have a functioning government.
- alejoar 1mo agoNo they don't.
- Barrin92 1mo agoRoughly half of American states have passed extensive internet regulation in the last few years to the point of entire businesses exciting their states, and that's the conservative parts of America. The American public, of various creeds and political orientations is as, if honestly not more skeptical of US tech companies. They simply have no control over their government, which is captured by tech CEOs. The recent anti datacenter activism extends to IIRC over 40 states now and has roughly 70% largely bipartisan support.
- alejoar 1mo agoSure, and fair. But that only explains that Americans want regulation, not that they want EU regulation. Americans put innovation and result ahead while Europe prefers precaution/fairness first. There are real costs for Europe in terms of productivity because of this. Take a look at the Draghi report. Also see European founders relocating and citing regulation as a problem when it comes to access to capital.
- pjmlp 1mo agoPoor American companies, who thinks of them when Chinese government does similar actions, and they play ball, regardless of the government actions.
- deleted 1mo ago[deleted]