Lagarde Warns Europe Must Build Its Own AI to Avoid Dependence on Global Rivals

European Central Bank President Christine Lagarde said Europe needs domestic AI models and more datacentre capacity to avoid dependence on the United States and China. She warned that cutting off access, or changing its terms, could give trade partners unprecedented leverage over European policy and economic decisions. Europe currently hosts only about 5% of global AI computing capacity, compared with 75% in the US. Lagarde said rapid investment could boost productivity, protect data, and preserve Europe’s strategic autonomy for generations.