Mistral co-founder Arthur Mensch has issued a stark warning to Europe regarding its reliance on US technology companies for artificial intelligence (AI) infrastructure. The CEO of the French AI startup cautioned that Europe has a two-year window to develop its own AI capabilities or risk becoming dependent on American firms for computing power, energy, and AI systems.
Europe's Digital Sovereignty at Risk
Speaking during a hearing on digital sovereignty and AI at France’s National Assembly, Mensch emphasized the urgency of the situation. He warned that if US companies monopolize the supply of chips, computing resources, and energy needed to support AI models, Europe could lose control over critical AI infrastructure.
“It will be decided in the next two years. Once supply is monopolized by American players, suddenly we no longer have supply and we can no longer transform electrons into tokens,” Mensch said, referring to the process of converting computing power into AI-generated outputs. He added that continued dependence on imported digital services could eventually leave Europe in a position where it becomes “a vassal state.”
AI Competition Shifts Toward Infrastructure
According to Mensch, the future AI race will increasingly depend on access to chips, electricity, data centers, and computing capacity rather than software capabilities alone. He highlighted the massive investments being made by the United States: “The Americans are deploying a trillion dollars next year. The one who controls the chips, who controls the electrons, who has massive access to energy — that's the one who wins.”
These comments come as technology companies globally continue increasing investments in AI infrastructure to support growing demand for large language models and AI tools. Mensch also argued that Europe’s fragmented regulations and capital markets make it harder for startups to expand compared with the US.
“If we don't move fast enough, we'll end up in a situation where we have no choice left. In a world where you import all your digital services from the United States, you have no leverage over the United States,” he added.
Mistral's Role in Europe's AI Future
Founded in 2023 by former researchers from Meta and DeepMind, Mistral has positioned digital sovereignty and open-source AI as central parts of its strategy. The company has recently announced partnerships aimed at expanding Europe’s AI infrastructure, including collaboration with Groupe Caisse des Dépôts focused on generative AI and GPU computing resources to strengthen Europe’s “digital sovereignty.”
Mensch stated that Mistral aims to build a gigawatt of AI computing capacity by 2029, while suggesting that Europe would require broader infrastructure investment to remain competitive in AI development. The warning highlights the critical need for Europe to act swiftly to secure its technological independence.
