Europe confronts its US AI dependence at G7 and VivaTech

TL;DR:

  • Tech sovereignty dominated the G7 in France and the VivaTech conference in Paris this week as Europe confronted US AI dominance.
  • Despite billions in investment, European AI firms still rely on US-controlled cloud, chips and foundational models.
  • Executives warned European cloud alternatives can cost premiums of up to 40%, making autonomy a real trade-off against price.

Europe’s quest for technological sovereignty took centre stage at the G7 summit and the VivaTech conference, as policymakers and executives grappled with their dependence on American AI just days after the US tightened access to Anthropic’s most advanced models. The gatherings exposed an uncomfortable truth: alternatives to US technology remain scarce, and the export curbs showed how quickly political decisions abroad can derail Europe’s own AI ambitions.

Sovereignty versus cost

“Tech sovereignty will be top of mind,” IBM’s Ana Paula Assis told Reuters, but the underlying dilemma is stark — strategic autonomy versus continued reliance on US firms that dominate cloud, chip design and frontier research. France’s Prime Minister insisted the country “must have its own tools”, and the European Commission has floated AI “gigafactories” and laws to boost domestic cloud and semiconductors. Yet Capgemini’s Karine Brunet noted European cloud alternatives can demand premiums of up to 40%, while critics say Europe remains years behind. Telecoms group Orange put the political point bluntly: it is vital to have an AI service “that will never be switched off on a whim”.

For the UK — outside the EU but no less exposed — the debate is more than continental theatre. Britain’s recent fortnight has driven the lesson home, from the Anthropic suspension order to Washington’s refusal of a UK carve-out. France is already acting, dropping Palantir for a domestic supplier; the UK’s sovereign options look thinner by comparison.

Looking forward

The 40% premium is the number that matters. Sovereignty is not free, and most firms will weigh that cost against a risk that feels abstract — until access is cut. Europe’s gigafactory plans and champions like Mistral are years from displacing US incumbents, so the near-term reality is hedging: drawing on European tools for the most critical workloads while keeping global partners elsewhere. For UK decision-makers, the practical takeaway is to identify which systems genuinely cannot tolerate a foreign off-switch, and price autonomy accordingly.

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