Bundesbank Executive Calls for European AI Strategy Built on Chips and Cloud

Deutsche Bundesbank Executive Board member Fritzi Köhler-Geib called for Europe to build a digital-sovereignty strategy around artificial intelligence, chips, cloud computing, robotics and quantum computing.

Speaking at an Oct. 1 roundtable in Brussels, Köhler-Geib said Europe needs coordinated demand, stronger commercialization of research and targeted investment to compete in frontier AI.

“In order to succeed in joining the ‘Premier League’ of frontier AI, we must approach this topic within the broader context of digital sovereignty,” Köhler-Geib said.

A July paper by Köhler-Geib, Claudia Plattner and Kristina Sinemus proposed 37 measures across the five technology areas. It said Europe imported 80% of its information-technology infrastructure and technologies from non-European providers in 2025.

The paper recommended forming an “AI Airbus” from companies in two to four European countries to develop a European frontier large language model. The broader proposal also calls for public procurement to be coordinated across countries and for research to be converted more effectively into marketable products.

“We need to pool public demand, improve the translation of innovation into marketable products, and invest in application-oriented research in selected cases,” Köhler-Geib said.

The plan includes €2 billion to €4 billion in private or public capital for photonic-chip production and €50 million to €100 million for research into future chip technologies.

“If we finance their production and construct data centres based on this next generation of chips, we would have an opportunity to build momentum when it comes to the training and use of frontier AI models, too,” Köhler-Geib said.

The European Union opened a July 30 call for proposals for up to seven AI Gigafactories. The program is backed by as much as €10 billion in EU and national funding and is expected to attract at least €20 billion in private investment.

The European Commission awarded a sovereign-cloud tender worth up to €180 million over six years to four European provider groups on April 17. The measures reflect an effort to expand European computing and cloud capacity alongside domestic AI development.