Fordel StudiosThe global race for the AI app layer is still on
What Happened
The U.S. is far ahead of Europe in the race for large AI models, at least in funding. But the picture is different for the application layer, global VC firm Accel highlighted in its 2025 Globalscape report.
Our Take
The US leading in models but lagging in the app layer is the opposite of the narrative Accel's probably pushing. It's actually worse than it sounds. Building models is expensive and concentrated (maybe 5-10 teams globally with the juice). App layers are distributed—anyone can build on top.
If Europe's catching up on apps, that's not a win for Europe, that's US models losing to better product design and PMing in other regions. The race isn't over. It's just splintering into different geographies doing different things. Still not clear what wins long-term.
What To Do
Stop measuring app layer success by headcount and measure by unit economics and lock-in instead.
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