Digital Sovereignty: Why Europe Is Closing the Door on American Tech
An AI company goes public, and Apple is puffing up its feathers. But the really exciting stuff happened in London.
This week, most gadget nerds have had their eyes on WWDC, Apple's annual event – not entirely unlike Google I/O. Software and products take centre stage, and Apple spends all its time showing why they're still relevant in an age where artificial intelligence seems to be running away from them.
For the language model nerds, Anthropic's new Claude model, Fable 5, has been getting plenty of attention. First because it seemed really good. Then came the grumbling that it was way too expensive. Funny, that – quality costing money.
Those of you who have only just heard the term token maxxing, or that language models are starting to cost real money, can read this one:
Sebastian Parry-Jones Øyrehagen
So what have I done this week? I've had an eye on what's been going on in London this week. That's where London Tech Week has been dominating the headlines. British Prime Minister Keir Starmer stopped by, and so did Prince William – plus a whole bunch of others.
When it comes to artificial intelligence, the UK seems to be miles ahead of Norway. Kanishka Narayan is the minister for AI and online safety (yes, they have a dedicated ministerial post for AI), and it was what he had to say that caught my attention.
Serious talk about sovereignty
On this year's agenda was a session called The Emerging Case for Sovereign AI Development in Europe. And Narayan was clear that going forward, Britain would have technology built for Brits, with British values at its core.
George Osborne – Britain's former Chancellor of the Exchequer – sat on the same panel. He thought it would be "a fools errand" if Britain – and Europe in general – were to believe that we can create artificial intelligence on our own. He pointed to the fact that neither the US nor China manages to control the entire supply chain; they depend on each other, and the Brits and the Europeans would too. But then Osborne's new job starts to shine through:
– A better way of thinking about it is: is Britain, or any other country, are they relevant in the AI world? Are they adopting the technology into their public and private sectors? – George Osborne at London Tech Week.
'Cause Osborne is the Head of OpenAI for Countries, as the title goes. In short, his job is getting governments and public authorities around the world to use OpenAI and artificial intelligence.
And he's got a point. It would be a formidable job for Europe to take over the entire AI value chain and make itself independent of the rest of the world. But is it daft, as he says?
No takeover
While London Tech Week was under way, Dutch authorities put their foot down over an American acquisition. Solvinity is a company that runs the Netherlands' national ID system, and the government didn't want it ending up in American hands.
That is a strong signal to send. The Netherlands has lost faith in Donald Trump and the US. According to the New York Times, the ruling states:
– The threat to the public interest can only be averted by prohibiting the proposed acquisition.
Since then, the Dutch have said they will consider similar blocks if foreign players try to buy up businesses in artificial intelligence and biotechnology.
Last week, the EU launched a strategy to make itself less dependent on American technology.
We cannot afford to depend on others for the technologies that keep our hospitals running, our energy grids stable and our services secure. This is about protecting our citizens, defending our interests and making our own choices. Europe has the talent, the research excellence, the industrial base and the Single Market. Together, we must turn these strengths into technological sovereignty. – Ursula von der Leyen
Today, more than 80% of the digital products used in the EU come from countries outside the union. At the same time, American companies control 70% of the cloud solutions available on the market.
Against that backdrop, the strategy in short means the EU will build its own chips and beef up its own AI and cloud solutions. An ambitious goal, but one I believe is absolutely necessary as we watch the fracturing of old alliances.
Big spenders
If we turn our eyes back to London, microchip maker and NVIDIA rival AMD took the stage and promised two billion pounds in British investments over the next five years. AMD boss Lisa Su, who is also NVIDIA boss Jensen Huang's cousin(!), praised the Brits and their strong entrepreneurial spirit.
It may well be that companies like OpenAI, AMD and NVIDIA are starting to feel the pressure of a more independent Europe. I certainly notice that promises of investment are picking up in step with Europe's quest to stand on its own two feet.
But here's where things stand today: the EU is laying out its own battle plan for sovereignty, and Britain is betting big on its own businesses. Chancellor Rachel Reeves has set up a fund of half a billion pounds. It's meant to finance British AI companies. At the same time, she's urging the government to prioritise British firms when it comes to public AI contracts.
Claude's new model is exciting. And Apple is showing off cool things again. But for me, it was London and the Netherlands that brought truly interesting stuff to the table. Digital sovereignty was once a niche topic for the most hardcore developers at the after parties.
London Tech Week was a reminder that things are starting to happen, and the afters chatter has moved up to the very top level.
The door is closing on American technology.