It indeed is a wake up call. But at the same time the strong data protection laws, copyright and privacy laws make it extremely difficult for a European company to develop a frontier model. Activist lawyers can sue and drag startups for training their model on a news article and the legal expenses would be higher than the engineering costs.

ChatGPT was released 4 years ago and still out of 27 countries in EU, only Mistral based in France has a model closer to a frontiers and IMO EU has already lost the race and still trying to catch up to yesterday models.