The French AI industry has the potential to bridge the technology innovation gap between the EU, the US, and China, according to Macron.

• Emmanuel Macron, the French President, states that Europe is handling AI innovation, tech regulation, and competition with China differently than the United States.
• In an exclusive interview with CNBC's Andrew Ross Sorkin, Macron stated that it is unbelievable that the world's largest corporations originate solely from China and the U.S.
• Technology leaders descended on Paris this week for the VivaTech innovation trade show.

France is pursuing AI innovation, tech regulation, and competition with China differently than the United States, as Europe seeks to become the third major global tech force in a landscape now dominated by the US and China, said French President Emmanuel Macron this week.

In an exclusive interview with CNBC's Andrew Ross Sorkin in Paris on Tuesday, Macron stated that it is unbelievable that the world's largest corporations originate solely from China and the U.S.

France's leading AI company, Mistral, has recently received a 15 million euro ($16.3 million) investment, and Macron believes it has the potential to become one of Europe's big players in the field.

H, the French AI startup that recently raised $220 million in its initial round of funding, was praised by Macron.

He stated that it is beneficial for the U.S. ecosystem to have a highly dynamic and ambitious European ecosystem.

On Tuesday, the Elysee Palace hosted a group of business leaders and engineers in AI, as technology leaders descended on Paris for the VivaTech innovation trade show.

The wave of new private investments in the country, led by a commitment of 4 billion euros, resulted in the trade show and meetings.

"If more AI companies choose to set up shop in Europe, European governments will face the same challenges as their U.S. and Chinese counterparts."

He stated that our challenge for AI is to accelerate, innovate, and invest, while also regulating at the appropriate scale.

The EU has taken the lead in AI regulation with the passage of the EU Artificial Intelligence Act in March, which was the first major set of rules.

Macron defended the strict EU online privacy regulations and rejected the widely held view in Washington that Brussels is deliberately trying to undermine the dominant positions of U.S. tech giants like Google and Meta through a competition-by-regulation strategy.

"I believe it is incorrect," said Macron. "If I wish to ensure your privacy, storage of your data, and view of your cloud, this is a crucial and sovereign democratic issue."

He compared the American tech giants operating under U.S. regulations in Europe to a French bank operating in the U.S. without adhering to American banking regulations.

"When operating in the U.S., I do not regulate you. However, when you operate in the European continent, you must adhere to European rules."

Macron suggested that certain U.S. tech regulations may have gone too far when discussing China.

ByteDance's TikTok app does not pose a significant national security threat to France, according to him.

In order to continue operating on American devices, ByteDance must divest TikTok under a recently passed U.S. law aimed at national security.

Macron stated that we did not employ this method and that we maintain a neutral stance regarding technology, nationality, and players.

He stated that China is a competitor in terms of trade, innovation, and economy, but lamented that we should work more collaboratively to ensure they adhere to international rules rather than disregarding them ourselves.

"They compete and excel in innovation and production," he stated. "We were previously unaware, and now Europe is less productive compared to the U.S."