Europe Must Develop Its Own AI Technology to Avoid Strategic Risks

European Central Bank President Christine Lagarde emphasized that Europe must develop its own AI technology and data centers to avoid critical dependency on foreign powers. Speaking in Vienna, she noted that global AI development remains heavily skewed toward US and Chinese markets.

Last year, the US produced 59 notable AI models and China produced 35, while France and the UK developed just one model each. The US also hosts 75% of global AI computing capacity through data centers, compared to Europe's 5% share.

Lagarde warned that relying on foreign markets gives external trade partners unprecedented influence during international negotiations. She stressed that this reliance is particularly concerning given the strategic importance of AI integration in various sectors, including border control, tax audits, public transit, healthcare monitoring, and financial settlement networks.