ECB President Lagarde Warns Europe Must Develop Its Own AI Infrastructure
European Central Bank (ECB) President Christine Lagarde emphasized the need for Europe to develop its own artificial intelligence capabilities, warning that reliance on imported technologies from the United States poses a strategic risk. She highlighted how embedded AI in sectors like border screening and tax administration could give foreign suppliers significant leverage over European economies during negotiations. Lagarde noted that expanding computing infrastructure is critical, as current data center capacity falls short by more than sixfold within projected trends. Closing this gap may cost up to €600 billion over ten years. While the EU's gigafactories are a step forward, they remain insufficient and require accelerated development. Beyond hardware, Lagarde stressed that Europe must create AI models capable of meeting most use cases on local systems. She cited French firm Mistral as an example but noted further progress is needed to reduce dependency on foreign suppliers.
Topics: AI Data infrastructure European Union policy Global tech competition