News, Trends, and Insights for IT & Managed Services Providers
News, Trends, and Insights for IT & Managed Services Providers
Business of Tech | Tech Jobs Shrink

Large language models made a significant entry into Europe’s digital sovereignty agenda, with the announcement of the OpenEuroLLM project aimed at developing open source language models for all European Union languages. Co-led by computational linguist Jan Hajič and Peter Sarlin from Silo AI, the initiative has a budget of thirty-seven point four million euros, with twenty million euros sourced from the European Union’s Digital Europe Programme. The project includes partners from academia and industry across several countries, including Spain, Italy, Finland, and the Netherlands. However, concerns have been raised about the project’s feasibility due to the involvement of over twenty organizations, leading some to question whether it can achieve its ambitious goals. The aim is to create foundational models that preserve linguistic and cultural diversity, with the first version expected by mid-2026 and a final iteration by 2028.
In a significant move to enhance artificial intelligence capabilities in Europe, Commission President Ursula von der Leyen has launched the InvestAI initiative, aiming to mobilize two hundred billion euros for investment in AI, including a new European fund of twenty billion euros for AI gigafactories. This initiative was unveiled at the Artificial Intelligence Action Summit in Paris. The InvestAI fund will finance four future AI gigafactories across Europe, specializing in training complex AI models, and will include around one hundred thousand of the latest AI chips. This public-private partnership seeks to ensure that every company, not just the largest, can access substantial computing power. The EU Commission’s initial funding will come from existing EU funding programs, and the initiative is expected to unlock over ten times more private investment, contributing significantly to Europe’s AI landscape.

European regulators are scrutinizing DeepSeek due to concerns over its data practices. This follows Italy’s decision to block DeepSeek’s chatbot for lacking transparency regarding personal data usage. The European Data Protection Board, or EDPB, has noted that regulators in France, the Netherlands, and Belgium are also questioning DeepSeek’s data collection methods. The EDPB has established a quick response team to assist national authorities with these sensitive issues, reflecting Europe’s commitment to enforcing its General Data Protection Regulation, recognized as the world’s most stringent privacy law.

President Trump has initiated widespread cuts to federal cybersecurity programs, resulting in the dismissal of over 130 employees from the Cybersecurity and Infrastructure Security Agency. This move has raised alarms among security experts, with some warning that the changes may pose a greater threat to U.S. information systems than foreign adversaries.

Why do we care?

Europe is showing it won’t be left behind on AI, and is part of a broader push in Europe to develop local AI infrastructure and reduce reliance on non-European technology providers, reflecting a growing emphasis on digital sovereignty.     Europe’s GDPR-first approach will drive demand for compliant AI services, making privacy a key differentiator.

Is the US making itself less secure at the same time?   Federal budget cuts may shift security responsibilities to private firms, creating business opportunities but also new risks.

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