Lagarde: Europe Must Build AI or Risk US-China Dependency

ECB President Christine Lagarde warns that Europe's reliance on US and Chinese AI technology exposes the continent to trade leverage and potential cutoffs. She calls for European development of AI models and datacentre infrastructure to reduce strategic vulnerability. The warning highlights growing concerns about technological sovereignty and geopolitical competition in artificial intelligence.

Byte's take

Europe's AI lag isn't a tech problem—it's a sovereignty crisis in the making. Lagarde warns that reliance on US and Chinese models leaves the EU vulnerable to trade pressure and supply disruptions across all 27 member states.