TECH NEWS

US-Europe Investment Gap Widens Due to AI Surge

The investment gap between Europe and the United States is widening, according to a research briefing from Oxford Economics.

The analysis by the Oxford-based company forecasts that private investment in the US will increase by 40% in real terms between 2021 and the end of 2027, whereas the average for France, Germany, Italy and the UK will be just under 12% over the same period.

The main cause of this gap is AI, a sector which the US dominates, and without which investment in American businesses would have actually declined since the fourth quarter of 2024.

Yet as Oxford Economics’ research makes clear, other factors have disadvantaged Europe, including rising oil prices and ongoing tariffs, while the advisory firm’s lead economist suggests Europe deals with more red tape, a less dynamic labour force and a smaller market for capital investments.

The US leading in most sectors, including AI

There have...

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The US leading in most sectors, including AI

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Dubai is training 14,000 companies to run AI agents, on a two-year clock

Jensen Huang says AGI has arrived, and 400,000 more GPUs are coming

Musk ally’s Valor to lead $500m Uforce round at $5bn, Bloomberg reports