A Comeback Through Capitalism and (Hard) Work

OpenEuroLLM – this is the name of Europe’s new vision in the digital race. Under the banners of “AI Made in Europe” and “Shaping Europe’s Digital Future,” 20 leading European entities—including renowned universities, research institutions, companies, and European high-performance computing initiatives (EuroHPC) —are working together to catch up. However, the planned budget of 58 million dollars seems rather modest, especially considering the United States recently invested 56 billion US dollars in GenAI projects. The name “OpenEuroLLM” also doesn’t sound quite as impactful as Lama, Groc, Claude, or their well-known friend GPT.

Nevertheless, something is currently happening in Europe that, only a few months ago, still felt like a distant future. In no small part because of the Trump administration and its latest tariff threats, European states are finally being forced to recognize that the time has come to take active measures for prosperity and for the future.

France as a Pioneer

A symbol of this new European revival is France. The French government recently announced an investment of 109 billion euros in artificial intelligence, an undertaking that may be supported by international investors—possibly including partners from the United Arab Emirates. The country also plans to build a gigantic AI data center, which could become one of the largest of its kind in Europe. Even before that, President Macron’s “AI for Humanity” initiative generated a lot of attention and helped boost the attractiveness of Paris for global talent and investors.

Against this backdrop, it’s no surprise that Paris has long since evolved into a hotspot for European AI development. This week, heads of government, leading companies, researchers, and representatives from society and culture gathered there for the “AI Action Summit” to discuss Europe’s digital future. On the eve of the summit, a consortium of capital providers announced that they would invest over 150 billion euros in artificial intelligence and its ecosystem in Europe over the next five years.

Closing out the summit, European Commission President Ursula von der Leyen launched InvestAI, a €200 billion initiative to accelerate AI development in Europe. Central to the plan is a €20 billion fund for AI gigafactories, designed to provide the infrastructure needed for training advanced models. This public-private partnership aims to make Europe a global AI leader by ensuring broad access to computing power and fostering open, collaborative innovation.

This clearly shows: if Europe wants to remain competitive on a global scale, it must cooperate more closely and pool investments. Instead of setting up small incubators, co-working spaces, and startup hubs everywhere—where, in the end, the main beneficiaries often seem to be consultants and tax advisors—Europe needs to create competence centers and ecosystems. These hubs should also support tech companies in later funding stages and establish the prerequisites for IPOs and growth—which ultimately benefits everyone. It’s not only about research or the intellectual expertise of our educational institutions; the economic foundations that secure our future competitiveness are equally crucial.

To achieve this, Europe must refocus on its identity-shaping values—particularly on European cooperation, which remains the cornerstone for collective progress, stability, and innovation. A robust, cross-border network of talent, capital, and infrastructure is essential if the EU are to foster internationally competitive technologies and businesses.

When Musk Goes Populist, Europe Goes Electric

While Elon Musk positions himself on the far-right in the U.S. with populist rhetoric, Tesla’s sales numbers in Europe are declining. In Germany, Tesla registered a 59.5% drop in new registrations compared to the previous year, 63% in France, and 38% in Norway. Former Tesla fans are placing stickers on their cars reading “I bought this before Elon went crazy,” and in my home country of Norway, some people are trying to sell their new Teslas—without success. Is this a golden opportunity for the comeback of Germany’s leading industry? At the very least, Volkswagen quietly announced an electric car for 20,000 euros. The future is technological, affordable, and electric.

This is all about the economy, performance, and capitalism. Europe remained stuck in ideological notions for a long time, reinforced by simplistic sound bites in TV talk shows. But in a world dominated by technological and economic upheavals, even ideologically oriented such as the Green Party in Germany are coming to realize that ecology and economy are not polar opposites; under the right conditions, they can complement each other. Thus, in his final push for the German federal election campaign, Robert Habeck, a leading Green politician and Germany’s current Minister for Economic Affairs and Climate Action, is promising “more work, less bureaucracy, and more investment.” Climate policy is no longer just a chaotic fight against everything; it is also a fight for something—namely for a new form of capitalism in which technological progress and forward-looking investments might be the only way to safeguard humanity’s existence on our planet.

These recent developments pave the way for innovation and new breakthroughs in science and technology. Trump’s “Drill-Baby-Drill” approach is accelerating innovation and competition between different energy sources. Ultimately, the most efficient companies and energy sources will prevail. Given the rapid decline in battery costs and the expansion of solar and wind power, the combustion engine will no longer be competitive by 2025. In a decade, as the marginal cost of energy approaches zero, conventional energy sources will be phased out—oil and gas simply will not remain competitive. The Rise of Eco-Capitalism: Ecology = Economy.

Trump’s Dealings With Allies

Donald Trump may prove to be the long-awaited wake-up call from Europe’s prosperity-induced slumber, possibly injecting new life into the European economies. Symbolically, much of the investment Macron refers to is expected to come from the United Arab Emirates. With impending trade disputes with the U.S., Germany and Europe would be well advised to reinforce relationships with other trading partners and forge new alliances.

China has long since diversified and taken lessons from Trump’s first term and the 2018 trade regulations. China thinks in long-term goals, and with core industries such as EVs and photovoltaics, it’s hardly dependent on the U.S. While traditional combustion-engine cars might enjoy preferential treatment under Trump in the States, China is exporting its mobility concepts worldwide. At the EU Ambassadors’ Conference in Brussels on February 4, Ursula von der Leyen mentioned a new stance toward China: “I believe we can reach agreements that could expand our trade and investment relationships even further. It’s a balancing act for us. But it can lead to a fairer and more balanced relationship with one of the world’s economic giants. And that can benefit Europe.” Behind the egos and power plays of Trump and Musk, new opportunities for decentralized trade alliances and a new chapter of European cooperation are emerging. The dictates of former friends and allies not only force a rethinking in private relationships; in terms of the economy and technological future, Donald Trump might present Germany and Europe with a brand-new chance.

American tech entrepreneurs understand this. Publicly, they may nod to Trump, but behind the scenes, they are building structures to reduce their dependence on the U.S. Sam Altman and OpenAI have already decided to expand their presence in Europe. After setting up offices in Paris, Brussels, London, Dublin, and Zurich, they are now coming to Munich. Altman recognizes the potential of German technical expertise and the strengths of its hidden champions—key factors for industrial use cases of commercially viable AI models.

Europe realizes that only through hard work and collective effort, with a clear focus on business and technology, can they maintain a stable union of states and “prosperity for all.” If an eco-social market economy is the target, it will be more social when there’s something to distribute, and more ecological if technological progress enables economy and ecology to work hand in hand. Between dystopian fears of the future and utopian faith in technology lies a possibility of “possibilism.” Perhaps it’s precisely Trump and the role of Musk that could provide the impetus needed to lift the European Union out of its downward spiral and negative mindset.