BRATISLAVA – When it comes to artificial intelligence (AI), Europe’s biggest challenge is not the sudden arrival of foreign frontier models or the proliferation of American and Chinese platforms across its markets. It is that the broader political economy of AI relies on precisely those domains where Europe is handicapped: industrial build-out capacity, compute (data centers and chips), and a genuinely unified single market that would allow for strategic scaling. These deficiencies can no longer be ignored, because the goal of U.S. policy is shifting from “managing China” to “outpacing everyone” globally. Alongside an export-control regime, the latest 25 percent tariff on selected advanced AI chips under the Trump administration aims to pull more investment in high-end semiconductor production back onshore, making US domestic fabrication more competitive and accelerating the development of its own AI infrastructure. The tariff is one expression of a broader AI strategy that has been taking shape for years and that discards three longstanding assumptions: that the United Sta
Europe cannot avoid an AI reckoning
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