I do not usually write about socio-economic or political issues in this blog. However, I would like to discuss European AI sovereignty this time, because I believe it to be linked to the core topic of this blog: reliable software.
The Economic Need for AI Integration
Integrating AI into core business processes is a macroeconomic necessity for Europe. Companies must use AI to automate tasks, analyze data, and improve overall efficiency to remain competitive in the global market. In my opinion, the real economic value of AI is not generated by simply having access to raw technology. To me, it seems clear that the true value is created at the application level and by incorporating AI into repetitive business processes that benefit from it. Businesses need to build software and integrate AI directly into their workflows, enterprise tools, and consumer products. I am deeply convinced that European companies need a reliable and stable foundation to focus their capital and engineering efforts on building them.
European Dependence on American AI
Right now, the foundation for European AI applications relies heavily on American technology. I see this reliance as a severe strategic vulnerability. To me, there is a parallel here to Europe’s past dependence on Russian gas. Germany imported 55% of its gas from Russia when Russia invaded Ukraine in February 2022. In 2025, Anthropic, OpenAI, Google and Meta captured a staggering estimated 96% of Enterprise LLM API market share. Just as relying on a single foreign state for energy proved to be a massive economic and political liability, I believe relying on the United States for core AI infrastructure carries geopolitical risks.
Many have been alarmed by the recent price hikes of multiple US companies such as GitHub Copilot switching to usage-based billing. But there is also a greater, political risk. The core issue is not that individual American companies might raise their prices or change their terms of service. The real threat is that the US government could impose export controls or trade restrictions on AI technology. If Washington decides to restrict foreign access to advanced models or compute resources due to shifting political priorities, European businesses built entirely on American APIs could be cut off without warning.
The EU AI Action Plan
When I look at the European Union’s AI Action Plan, I see a well-intentioned attempt to address these technological gaps. However, I think the current strategy focuses too heavily on training new foundational models from scratch.
Training large AI models requires massive capital expenditure (CapEx) for compute resources. To me, this looks like a CapEx trap. Foundational models are rapidly becoming commodities, and I do not think Europe needs to outspend American hyperscalers in a brute-force training race.
Since the EU has many issues to solve (renewable energy transition, managing the industrial decline, etc.), which might compete for subsidies, I do not believe entering into the ruinous race for frontier models is a good allocation of public funds. Instead, I believe our funding and effort should focus on creating European infrastructure for existing models.
Sovereign Inference Infrastructure
Instead of training models, I believe the priority for Europe is building sovereign infrastructure for AI inference. Inference is the process of using a trained model to generate text, analyze data, or make decisions.
To achieve sovereignty, I think European applications need to run on data centers located on European soil that are specifically optimized for inference workloads. While the exact technical requirements for inference hardware might evolve, controlling this infrastructure ensures that European companies have reliable access to AI capabilities without the risk of foreign government intervention. In my view, the infrastructure is simply the enabler; it provides the stability needed for the application layer to thrive.
I do acknowledge that, at least initially, this would mean dependence on recent NVIDIA GPUs from the US or specialized NPUs (like Huawei’s Ascend) from China. This is a case where perfect should not be the enemy of good. The supply chain risk of modern hardware is also significant, but this concern can be addressed separately.
Concrete measures could for example include:
- tax coupons for companies spending on EU-based AI platforms
- direct subsidization of companies investing in local datacenter expansion
- energy tax exemptions
All of these would of course need to be implemented EU-wide to protect the EU Single Market integrity. But these are just some of my proposals. I am convinced creative policymakers will find even better ones.
Trustworthy and Accessible AI
To mitigate geopolitical risks, European companies could rely on open-weights models. Because the model weights are publicly available, they can be downloaded and run independently.
My goal here is not to suggest that every company must build highly complex, air-gapped server rooms. Rather, I think the objective is to ensure that AI models are accessible and provided by trustworthy parties. Businesses need to know that the infrastructure running their core applications is transparent, reliable, and free from foreign political leverage.
Chinese Open-Source Models
When selecting open-weights models for inference, I know companies have several global options, including models developed in China. During his talk at the OMR festival, tech analyst Philipp Klöckner discussed the utility of these Chinese open-source models. He noted that they are often highly compute-efficient for inference, meaning they require less hardware to run and return outputs quickly.
In contrast, he also issued a warning about the associated risks. These models can contain embedded censorship to align with Chinese state guidelines. However, since these models are open in terms of structure and trained weights, it would also be an option to “de-censor” them by fine-tuning them with uncensored content.
There also exist some open-source options from the US such as OpenAI’s gpt-oss and Meta’s Llama families. The French company Mistral is also developing open-source models, which are somewhat in the middle of the pack on many benchmarks. From their online presence it appears to me that they are focusing on full-stack AI offerings including tailored AI solution instead of the most capable foundational models. Chinese models are certainly leading currently.
An overview of the wider AI model ecosystem could for example be found at llm-stats.com. I find the landscape of available open-source models to be highly attractive.
Inference-as-a-Service
Setting up and maintaining local inference infrastructure is complex. Most standard businesses simply do not have the operational capacity to manage it. To bridge this gap, I believe Europe needs strong Inference-as-a-Service (IaaS) providers.
These IaaS providers act as the trustworthy parties Europe needs. Scaleway is a notable European success story in this sector. As a cloud provider, they supply the necessary infrastructure for companies to deploy models securely within European borders or run the full operation with a simple-to-use API endpoint. Alongside Scaleway, I see emerging providers like Inceptron building services to help businesses run inference workloads efficiently. An overview can for example be obtained from the AI Atlas. The ecosystem has not quite grown large enough to convince me to ditch OpenRouter and subscribe to a European provider exclusively, but I see an opportunity. By utilizing these platforms, European developers (such as me) can get the accessible infrastructure required to power their software without relying on foreign APIs.
Conclusion: A Practical Blueprint for Europe
Achieving European AI sovereignty requires a practical approach. In my opinion, it does not mean competing in the expensive race to train the latest foundational models.
While it is hard to predict exactly how the global AI landscape will play out over the next few years, I am convinced that a more pragmatic strategy is our best path forward. By recognizing the political risks of relying on foreign AI infrastructure, Europe can adapt. The path forward involves utilizing open-weights models hosted by trustworthy, local IaaS providers. I believe this approach secures the technology stack and provides the exact stability European businesses need to capture the true economic value of AI at the application layer.
I am looking forward to being pleasantly surprised!
PS: Ironically, this post has been co-authored by Gemini.
