Europe Falling Behind in AI Race, Macron Warns
French President Emmanuel Macron has issued a stark warning about Europe’s position in the global AI race, acknowledging that the continent is lagging behind competitors like the United States and China.
“We are not in the race today,” Macron told CNN’s Richard Quest in an exclusive interview at the Elysee Palace. “We are lagging behind.”
Macron’s concerns highlight the growing gap in AI advancements, with Europe struggling to keep pace with leading AI powerhouses. “We need an AI agenda,” he said, emphasizing the need for strategic initiatives to ensure Europe plays a significant role in AI’s future development rather than becoming just a consumer of the technology.
The remarks come as France hosts an AI summit in Paris, aiming to position the country at the forefront of international AI discussions. The event also spotlights Paris-based AI startup Mistral, which launched a new application this week and is widely considered Europe’s challenger to OpenAI.
However, competition from lower-cost Chinese firms like DeepSeek presents additional hurdles for European AI ambitions.
Boosting AI Infrastructure and Funding
Despite its struggles, France holds a unique advantage in AI development — its nuclear-heavy energy portfolio. This energy surplus positions the country as a prime location for power-intensive data centers, a crucial factor in AI growth.
France is set to unveil Europe’s largest supercomputer outside Paris by fall 2025. Housed at the Mont Valerien military facility, the system will support AI-driven advancements in defense, including anti-drone jamming and the architectural design of future aircraft carriers.
However, beyond France, Europe as a whole controls only 3–5% of global computing power. Macron sees an opportunity to change that by investing in AI infrastructure and has ambitious plans to establish 20% of the world’s data centers in Europe.
Securing sufficient financial backing remains a significant challenge. Macron stressed that Europe “must do much better” in attracting investments, particularly as American and Gulf Arab states continue to dominate global AI funding.
Trade Tensions and Economic Challenges
Europe’s AI ambitions are also complicated by rising trade tensions with the United States. Former U.S. President Donald Trump has repeatedly criticized the EU’s trade policies, accusing the bloc of unfair practices. In 2024, the U.S. trade deficit with the EU expanded by $26.9 billion to reach $235.6 billion, fueling Trump’s calls for reciprocal tariffs.
Macron pushed back, arguing that Europe’s significant spending on U.S. digital services is often ignored in trade calculations. To counter potential economic disruptions, he stressed the importance of protecting European producers and reducing regulatory burdens on investment.
“Europe has to simplify its rules, make it much more business-friendly and synchronize with the United States,” he stated.
A Wake-Up Call for Europe
Macron remains committed to ensuring Europe stays competitive in the AI sector. “I will fight for AI,” he declared, emphasizing the need for a more dynamic business environment. He outlined plans for AI startup-friendly regulations, with key announcements expected in February and March.
He hopes that the Paris AI summit will serve as a “wake-up call” for Europe, pushing policymakers to adopt bold reforms and foster an AI-friendly business ecosystem.
