'stop trying to make fetch happen'

That is one theory. Another is that AI companies just don't comply and have no nexus of assets in the EU so there could be no enforcement against them.

I don't think you truly appreciate the money being left on the table with your 'just'

There is a self-congratulatory concept that's fairly prevalent in some policy circles called "The Brussels Effect". It's the idea that the EU can exercise outsized political influence by being the first and/or most ambitious mover in regulatory contexts.

In some policy circles, this has morphed into a probably unsupported belief that the Brussels Effect, to the extent it exists, will have economic benefits for the EU. It's an obviously attractive luxury belief for those whose bread and butter is pushing regulations.