According to Sifted, Europe's AI ecosystem is at a crossroads, with its startups increasingly reliant on US foundational models and capital. While this dependency has fueled rapid growth, it also exposes the region to vulnerabilities, particularly as American platforms reportedly begin to raise prices. The long-term viability of many European AI startups may hinge on their ability to differentiate and embed themselves in specialized sectors. However, the broader question remains whether Europe can pivot from reliance on US infrastructure to building its own competitive edge in the AI landscape.