Bundesbank Executive Proposed European AI Strategy
The plan aims to bolster digital sovereignty through significant investments in chip production and research.
Updated on Oct. 8, 2026 in Artificial Intelligence
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Bundesbank executive Fritzi Köhler-Geib has unveiled a comprehensive strategy to strengthen European digital sovereignty. The proposal features 37 measures aimed at reducing dependency on non-European technology providers after 80% of IT infrastructure was imported in 2025.
Why it matters
Europe seeks to improve its competitive position in frontier AI by coordinating public procurement and fostering cross-border cooperation. This strategy attempts to convert research into marketable products to challenge global dominance in artificial intelligence.
The strategy earmarks €2 billion to €4 billion for photonic-chip production and €50 million to €100 million for chip research. Additionally, the EU AI Gigafactory program aims to leverage €10 billion in public funds to attract €20 billion in private investment.
The players
Fritzi Köhler-Geib
She is an executive at the Bundesbank who has been advocating for strategies to enhance Europe's economic and technological autonomy.
European Commission
This is the executive branch of the European Union responsible for proposing legislation and implementing decisions, including digital infrastructure tenders.
The details
The proposal recommends creating an AI Airbus involving companies from two to four European countries to scale production. This initiative builds on existing efforts like the €180 million sovereign-cloud tender and the call for proposals for seven AI Gigafactories.
Timeline
In 2025, 80% of information-technology infrastructure was imported from non-European providers.
On April 17, 2026, the European Commission awarded a sovereign-cloud tender worth €180 million.
The European Union opened a call for proposals for seven AI Gigafactories on July 30, 2026.
Fritzi Köhler-Geib presented the strategy proposal at a Brussels roundtable on October 1, 2026.
The Tech Race
This strategy follows a pattern set by the EU AI Gigafactory program by emphasizing coordinated public funding for industrial infrastructure. It highlights the shift toward protectionism as Europe attempts to build a domestic supply chain for high-performance computing components.
If successful, these measures could eventually lead to locally produced, cost-competitive European hardware and cloud services for businesses. Users may see changes in the availability of regional software platforms as the EU pushes to replace reliance on non-European infrastructure.
The takeaway
The move underscores the growing trend of nations treating AI infrastructure as a critical pillar of national security rather than a purely commercial concern. Developing local supply chains remains the primary hurdle for policymakers aiming to achieve parity with dominant global tech hubs.
Further reading
Learn more about the latest developments in Artificial Intelligence.
Source note: This article includes information reported by TokenPost.
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