DeepSeek proves that Silicon Valley cant monopolise AI innovation, according to a European AI entrepreneur.Muj Choudhury, the CEO and co-founder of British voice processing startup RocketPhone, welcomed DeepSeeks rapid rise. He hopes the Chinese company signals a shift in the balance of AI power.AI development has long been dominated by Silicon Valleys powerful VC firms, which wield immense influence by pouring vast sums into the technology and shaping its trajectory, he said.In this landscape, an outsider like DeepSeek breaking through is not just impressive. Its necessary.The industry needs challengers to drive real innovation and prevent AIs future from being monopolised by a handful of players.That handful has certainly been shaken by DeepSeeks emergence. The Chinese startups AI assistant has overtaken ChatGPT to reach the top spot on the Apple App Stores free app rankings.The of EU techThe latest rumblings from the EU tech scene, a story from our wise ol' founder Boris, and some questionable AI art. It's free, every week, in your inbox. Sign up now!The companys open-source models have also stunned the market. In tests, theyve outperformed rival models from OpenAI and Meta at just a fraction of the operating costs.The advances have shaken the stock market. According to Choudhury, theyve proven that AI innovation isnt dictated by access to supercomputers or Silicon Valley funding.Fresh from raising $10.5mn for his own startup, Choudhury has growing optimism for Europes AI scene.He wants DeepSeek to inspire the continents tech sector,which is struggling to commercialise AI innovations.For European startups, who have historically excelled at building focused, efficient solutions rather than chasing scale at all costs, DeepSeeks rise suggests theres room for strategic players who can execute well without massive capital outlays, he said.Perhaps this shift will finally allow us to focus on what truly matters: building practical AI systems that solve real enterprise problems and deliver tangible business value, rather than chasing the next viral consumer app. Story by Thomas Macaulay Managing editor Thomas is the managing editor of TNW. He leads our coverage of European tech and oversees our talented team of writers. Away from work, he e (show all) Thomas is the managing editor of TNW. He leads our coverage of European tech and oversees our talented team of writers. Away from work, he enjoys playing chess (badly) and the guitar (even worse). Get the TNW newsletterGet the most important tech news in your inbox each week.Also tagged with