European Central Bank President Christine Lagarde has warned that Europe must develop its own AI technology and datacentres or risk being cut off by the US or China, according to the Guardian.
Key facts
- ECB President Christine Lagarde says Europe must build its own AI technology and more datacentres.
- Lagarde warned that AI dependency could give trade partners unprecedented leverage in negotiations.
- She said Europe needs AI models that are 'good enough' to handle most tasks and run from domestic datacentres.
- Investing in domestic AI would mean 'the threat of being cut off loses its force,' Lagarde said.
Europe must develop its own artificial intelligence technology and build more datacentres to remove the threat of being cut off by the US or China, according to the president of the European Central Bank, Christine Lagarde.
Speaking about the continent’s technological future, Lagarde said Europe needed AI models — the technology that powers tools such as chatbots — that were “good enough” to carry out most tasks and could be run from domestic datacentres, the Guardian reported.
Lagarde framed the issue as one of strategic independence, warning that Europe’s reliance on AI systems developed elsewhere could hand its trade partners significant leverage in negotiations. If the continent invests in its own AI technology, she said, “the threat of being cut off loses its force.”
The comments highlight growing concern among European policymakers about the region’s dependence on technology developed primarily in the United States and China, the two countries that currently dominate the global AI landscape.
By emphasising both the models themselves and the physical infrastructure needed to run them — datacentres — Lagarde pointed to the full stack of capabilities Europe would need to build in order to achieve a measure of technological self-sufficiency.
The remarks add the weight of one of Europe’s most senior economic figures to an ongoing debate about how the continent can compete in a field increasingly seen as central to future economic and geopolitical power.
Why it matters
AI is becoming a foundation of modern economies, and dependence on foreign technology could expose Europe to political and commercial pressure. Lagarde's warning signals that Europe's leaders view homegrown AI capability as a matter of economic security, not just innovation.
Frequently asked questions
What did Christine Lagarde say Europe needs to do?
According to the Guardian, Lagarde said Europe must develop its own AI technology and build more datacentres so it can run AI models domestically and reduce reliance on the US or China.
Why does Lagarde think AI dependency is a risk?
She warned that depending on foreign AI could give trade partners unprecedented leverage in negotiations, and said building domestic AI means the threat of being cut off loses its force.
What kind of AI models did Lagarde say Europe needs?
Lagarde said Europe needs AI models that are 'good enough' to carry out most tasks and can be run from domestic datacentres, according to the Guardian.