Lagarde warns Europe must build own AI models and datacentres to avoid US/China cut‑off
European Central Bank President Christine Lagarde told a Vienna audience that the continent faces a strategic dilemma: without home‑grown AI models and sufficient datacentre capacity, Europe could be forced to choose between stalling AI adoption or becoming dependent on foreign providers. She highlighted the stark disparity in AI output, noting the United States released 59 notable models last…
Key points
- Lagarde said Europe produces only one AI model each in France and the UK, versus 59 US and 35 Chinese models last year.
- She warned that the US controls 75% of global AI computing capacity while Europe holds just 5%, creating a strategic vulnerability.
- Lagarde estimated AI could boost European productivity by up to 4% over a decade, but datacentre capacity must expand sixfold to meet demand.
Lagarde warned that the U.S. currently hosts 75% of the world’s AI computing power compared with Europe’s 5%, and that a sudden loss of access would ripple through every sector—from customs screening to banking. She argued that investing in domestic AI could lift productivity by up to 4% over a decade, but warned Europe’s datacentre gap could grow sixfold unless capacity is rapidly expanded, underscoring the urgency for a coordinated European AI strategy.
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Europe must build own AI or risk getting cut off by US or China, says ECB’s Lagarde
The Guardian AI · 14 September 2026
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