Europe is at a crossroads. Faced with the domination of American Big Tech across the entire generative Artificial Intelligence (AI) value chain, from foundation models to cloud infrastructure, distribution channels, and open source, it risks long-term technological and economic decline. Yet generative AI also represents a major opportunity for economic transformation, with a potential value estimated at 1.5 times France’s gross domestic product (GDP). To turn it into a driver of renewal, Europe must move beyond the illusion of total technological independence and instead build an ecosystem that leverages Big Tech resources while strengthening
its own innovation capabilities. The real opportunity for Europe lies further downstream in the generative AI value chain, where models are adapted to the concrete needs of various sectors, particularly industrial ones. Thanks to its industrial, regulatory, and technical expertise, Europe can carve out lasting competitive advantages here. Rather than chasing an upstream sovereignty, the real challenge is to accelerate AI adoption across sectors by capitalizing on its areas of excellence and nurturing a startup ecosystem that turns cutting-edge technology into practical solutions. Upstream, the fierce competition between American tech giants paradoxically creates windfall opportunities for Europe. Locked in an investment race, none can afford to slow down despite the risks of overcapacity, pushing them to multiply spending in order to maintain their lead. This dynamic compels Big Tech to offer increasingly favorable access to their tools and infrastructure. European companies can seize this moment to develop innovative solutions at lower costs and monetize them quickly by targeting large markets like the United States