Bloomberg Intelligence data suggests that the European Union needs to invest $3 trillion by 2035 to achieve true self-sufficiency in technology, even as Brussels has pledged 30 billion euros to construct seven AI factories across Europe. The majority of this investment, $3 trillion, is needed to address deficiencies in cloud infrastructure, an area where Europe is heavily reliant on outside countries, particularly the United States. An additional $500 billion each is estimated for semiconductor equipment and foundries.
The investment also targets large language models, with a projected $300 billion needed. Currently, European markets account for approximately 11% of the large language model market share, significantly lagging behind the 88% dominated by the United States and China. Despite these shortfalls, Europe holds a dominant position in the production of machines that manufacture chips, with companies like ASML being key players.
Achieving full autonomy for Europe extends beyond technology, with a total estimated cost of $14 trillion through 2035. These investments would span critical sectors such as defense, energy, and the power grid. Failure to make these substantial investments could exacerbate the widening GDP gap between Europe and major economic powers like China and the United States.
In related geopolitical news, the UAE reported an Iranian missile attack, and has subsequently cut economic ties with Iran. This comes as President Trump maintains a hard line on Iran, with no breakthrough in the Hormuz stalemate, keeping tensions elevated and affecting energy supplies. Brent crude has risen above $90 a barrel due to the Hormuz blockade disrupting energy flows.
