Europe faces growing AI dependency and supply chain risks

European technology leaders and industry experts are warning of increasing dependency on foreign AI models and critical hardware. A study by the Friedrich Naumann Foundation reveals that Chinese AI models have rapidly gained market share in Europe, accounting for 58% of token consumption on the OpenRouter platform as of mid-2026. This shift raises concerns regarding long-term technological sovereignty and security risks.

Simultaneously, the AI boom is creating severe supply chain bottlenecks. The intense demand for high-quality, multi-layered circuit boards for AI computing is outcompeting traditional European industries, such as automotive and machinery, for limited manufacturing capacity in Asia. This shortage threatens to disrupt production across multiple sectors.

In response to these challenges, European tech executives, including leaders from Mistral and DeepL, are calling for greater investment in domestic foundational models to avoid a permanent trade deficit and technological capitulation to the US and China. Meanwhile, German companies are navigating the complexities of cloud dependency, with Bitkom reporting that many firms face significant operational risks due to vendor lock-in with US-based providers.