Access to artificial intelligence (AI) models is not only a matter of economic autonomy but also a matter of national security.
As for any doubts, this was made clear in mid-June when Anthropic announced that, at the behest of the US government, it would deny all foreign users access to its top AI software, citing national security concerns.
These AI models – Cloud Fable 5 and Mythos 5 – are considered particularly effective at identifying vulnerabilities in software.
German Interior Minister Alexander Dobrindt says Germany should urgently get involved in artificial intelligence.
He said that in the current situation it is necessary to help shape technological innovation. Otherwise, “you could very quickly join the victims,” he said, according to German news agency DPA.
A Franco-German AI response
The German Research Center for Artificial Intelligence (DFKI) told DW that initial efforts have already been agreed upon.
DFKI and its French partner Inaria are about to sign an agreement to establish the Franco-German AI Centre, a public research institute for computer science and automation.
According to DFKI spokesperson Andreas Schepers, offices will be set up in Germany and France from July and operational activities will begin in the fourth quarter of the year.
One French player has already entered the race: Mistral AI, a French software company focused on artificial intelligence and a European leader in large language models.
By European standards, the Mistral is a heavyweight. In September 2025, the company announced that it had secured an investment of approximately €1.7 billion ($2 billion at the time), valuing the company at approximately €12 billion.
Earlier, according to multiple reports, the Dutch company ASML, the world’s largest supplier of advanced machines used to print small circuits on computer chips for the semiconductor industry, had acquired an 11% stake in Mistral.
Who is seeking European autonomy?
“Europe must develop its own powerful AI offering to remain effective and competitive,” said Bernhard Rohleder, head of Bitcom, the German association representing more than 2,200 companies in the digital industry.
“A country is digitally sovereign if it has sufficient capabilities in key technologies and can freely decide from which countries to acquire technologies that it does not develop itself,” he told DW.
The German government appears to agree with this approach and implemented a European AI regulation in February.
In a press release, Digital Minister Carsten Wildburger announced plans to create “a lean AI oversight structure clearly focused on the needs of the economy.”
He pledged not to establish a new “bloated bureaucracy,” but to ensure “safe AI deployment, strong growth, and increased innovative capacity for our companies.”
Germany’s contribution to a European project
Mistral is always mentioned when discussing potential future European techno champions.
However, DFKI’s Lennart Kuhn also points to highly innovative German companies, including Black Forest Labs, Languedoc, CodeSphere, Aleph Alpha and Nura Robotics.
Bitcom chief Rohleder also emphasizes local strengths.
“Many companies in Germany are working on creating their own AI offerings,” Rohleder said.
“These include foundation models for machine or tabular data, as well as application models in areas such as medicine and education.”
What’s €12 billion when it comes to AI?
Building new structures requires time, joint efforts and above all goodwill and a lot of money.
So the news that Mistral was valued at €12 billion was very welcome. Yet, how significant is this figure given the incredible scale of global investment in the sector?
“A great deal can be achieved with 12 billion euros,” Rohleder said bluntly.
But it’s not just about money. “Whether it is possible to attract talent and whether the overall conditions are right is equally important,” he said. “AI companies need less regulation and a government that acts as an anchor customer, bringing new technologies into application and supporting their scaling.”
“The main question is not whether the Mistral can overtake the US in the short term,” wrote DFKI’s Lennart Kuhn. The success of an AI model is not determined solely by the valuation of a particular company.
According to Kuhn, “data sovereignty, regulatory compliance, transparency and control over infrastructure” are more important. “In these areas, a European provider like Mistral can definitely develop a competitive advantage.”
It’s not too late for Europe
Time is running out if Germany and Europe want to avoid being left behind.
According to the German Research Center for Artificial Intelligence, four key elements are needed if the continent wants to become a real alternative to the US.
- Significantly more investment capital will increase.
- Massive investment in European data centres, energy supplies and chip infrastructure.
- A single market that grows faster, is less fragmented and is more evenly regulated.
- Strong demand for European solutions from local businesses and institutions.
Bitcom’s Bernhard Rohleder says Europe has a fighting chance if European companies like those involved in the emerging Franco-German initiative can successfully establish themselves.
“European AI providers should and can become an alternative to global players in AI.”
This article was originally published in German.