Welcome to ICYMI – a weekly snapshot of European news stories that have given me pause for thought. ICYMI is a chance for you to go beyond the front-page headlines and find out what other stories may be worthy of your attention. This week; automation is on the rise in retail, the cost of adopting AI; and is the UK shifting to a four-day working week?
This week, a Chinese startup dominated the headlines and rattled global stock markets after unveiling its DeepSeek chatbot. The AI model appears to rival some of the most cutting-edge systems, yet it was developed with much less investment and without access to the latest technology. The news temporarily wiped trillions off the stock market, with chip makers like Nvidia bearing the brunt.
In the aftermath, DeepSeek has faced criticism for censoring responses related to the Tiananmen Square massacre or political tensions between China and Taiwan. Some experts have also picked holes in the technology, suggesting that there is insufficient evidence to prove it really can do everything it claims.
While DeepSeek had Silicon Valley in a flap, another chatbot made its debut in Europe. The French-language chatbot Lucie was designed to challenge the dominance of English-language AI models and promote more ethical AI use.
But, instead of doing that, it went completely rogue. After claiming that cows lay eggs and declaring the square root of goat is one, Lucie was quickly put out to pasture, while researchers at Linagora take time to figure out what went wrong.
Market wobbles prompt rethink of funding options by late-stage tech firms
As Trump bulldozed his way through four years of peaceful policymaking, global markets reacted to fears an international trade war could send prices soaring.
In Europe, tech companies are bracing for an increasingly uncertain financial market by eschewing IPOs in favour of secondary share sales. This allows founding teams and shareholders to turn their equity into cash without waiting for the company to go public.
With the market not shaping up well for potential IPOs, research by equity management platform Ledgy reveals that nearly four in five late-stage tech firms in the UK, US, and Europe are thinking about potentially cashing out sooner by selling secondary shares within the next 12 months.
With regulatory red tape making it more difficult for Dutch firms to offer employees shares or share options, the tech community fears a brain drain, with talent flooding out the country to the US, UK, and Israel, where such practices are more common.
Initiatives to boost growth and improve competitiveness across Europe spark debate
This past week also saw the EU and UK champion different approaches to boosting competitiveness and supporting the growth of technology companies across the region.
While the EU is seeking to reduce regulatory headaches through the creation of the 28th Regime – a single set of rules for tech firms across all EU member states – the UK government is once again attempting to build “Europe’s Silicon Valley”.
In what feels like a case of déjà vu, UK chancellor, Rachel Reeves, has backed plans to build a third runway at London’s Heathrow Airport and to expand Luton and Gatwick airports. The measures are part of a broader strategy to create a tech hub between Oxford and Cambridge, and to boost economic growth across Britain.
A multi-billion boost for the economy would be welcomed by many, but the only problem is that much of this has been attempted before and could take years of planning and political manoeuvring before a spade is ever put in the ground.
At the same time, it remains unclear how expanding London’s airports aligns with the UK’s climate goals or provides much benefit for the so-called “Northern Powerhouse”.
