Europe Seeks Diversified AI Supply Amidst US Export Control Threats

European Central Bank (ECB) President Christine Lagarde has sounded the alarm about Europe's reliance on US-developed artificial intelligence technology, warning that if access is cut off, it could have far-reaching consequences for the continent.

Lagarde stated that a withdrawal of access or change in terms would affect every sector simultaneously, giving no trade partner leverage over Europe. This anxiety stems from concerns about the politicization and weaponization of AI technology by tech-right forces in the US, which are increasingly treating it as an instrument of national security.

The EU is lagging behind in key areas such as cloud computing, chips, foundation models, and operating system ecosystems, making it vulnerable to export controls and compliance barriers imposed by the US. Statistics show that last year, the US produced 59 AI models, while China produced 35, and France and the UK each produced one.

Europe's reliance on US technology is further highlighted by its lack of computing capacity, with the EU already facing a shortage and expecting a sixfold increase in demand within a decade. In response, Lagarde sees diversifying supply as a viable solution, citing China's growing AI industry, which could become a reliable partner for Europe.