[kmmlng]

It's not like the US doesn't have a problem with affordable housing, so I don't see how this plays any role in the divide.

Germany has plenty of applied research organizations, from universities (e.g. RWTH) to things like Fraunhofer. The funding schemes behind these organizations are horrible and I would argue that in many ways, they are machines to burn up potential. Even with all this, Germany has been doing okay on the publicly funded AI research front, but that is irrelevant. The US isn't leading because of publicly funded AI effort, but because of privately funded AI effort.