Europe's AI Reliance on US Tech Creates Strategic and Financial Risks

ECB President Christine Lagarde has sounded an alarm about Europe's reliance on US-made AI technology, warning that it creates significant strategic and financial risks.

Lagarde pointed out that European investors hold $508 billion in US tech stocks and there is a massive gap in local computing infrastructure. She noted that the United States holds approximately 75% of global AI computing capacity, while Europe accounts for only 5%. This shortage of domestic data centers and local AI infrastructure means that European businesses and governments have limited control over the systems they use.

Lagarde warned that if access were restricted or commercial terms changed, it could disrupt essential services ranging from banking and healthcare to tax administration and transport. She emphasized that achieving strategic autonomy requires Europe to prioritize building models capable of operating on its own infrastructure.