Europe needs Nvidia. It’ll take more than a spy scandal to change that.

The European Union faces significant hurdles in advancing its artificial intelligence ambitions as budget negotiations stall. Sixteen member states have yet to appoint AI safety captains, while many missed deadlines for data center development, creating vulnerabilities in Europe's tech infrastructure.

The budget impasse has specifically paralyzed Brussels on proposals linked to EU funding, with no resolution in sight for the 2028-2034 financial framework. This deadlock affects not only AI chip initiatives but also other priorities like Arctic research and agricultural subsidies.

Despite calls to reduce reliance on US technology following incidents like the Starlink service cutoff that reportedly led to deaths, Europe continues to depend on American tech firms. An EU lawmaker recently pushed back against abandoning homegrown frontier AI models, acknowledging the strategic importance of indigenous development.