Germany and France announce partnership to establish a European AI superpower, advancing sovereign AI strategy.

Amid growing national security concerns surrounding artificial intelligence, Europe is accelerating efforts to develop sovereign AI capabilities through new Franco-German initiatives to reduce dependence on American technology. The German Research Center for Artificial Intelligence (DFKI) and France's Inria are establishing a Franco-German AI Center.

Acquiring artificial intelligence (AI) models is not merely a matter of economic autonomy, but also a question of national security.

For any skeptics, this became clear in mid-June when Anthropic announced that, acting on orders from the U.S. government, it would deny all foreign users access to its top-tier AI software citing national security concerns.

These AI models—Claude Fable 5 and Mythos 5—are considered particularly effective at identifying software vulnerabilities.

German Interior Minister Alexander Dobrindt stated that Germany must urgently catch up in artificial intelligence. He said that under current circumstances, helping to shape technological innovation is crucial. Otherwise, "you will quickly become a victim," he added, according to German news agency dpa.

The German Research Center for Artificial Intelligence (DFKI) told DW that preliminary efforts have been agreed upon. DFKI and its French partner Inria (a public research institution in the fields of computer science and automation) are about to sign an agreement to establish a Franco-German AI Center.

According to DFKI spokesperson Andreas Schepers, offices will be established in Germany and France beginning in July, with operational activities commencing in the fourth quarter of this year.

One French enterprise has entered the competition: Mistral AI, a French software company focused on artificial intelligence and a leader in the large language model sector in Europe.

By European standards, Mistral is a heavyweight company. In September 2025, the company announced it had raised approximately 1.7 billion euros (equivalent to about 2 billion U.S. dollars at that time) in investment, with the company valued at close to 12 billion euros.

According to multiple reports, Dutch company ASML (the world's largest supplier of advanced machines for printing tiny circuits on computer chips, serving the semiconductor industry) acquired an 11% stake in Mistral.

Bernhard Rohleder, chairman of Germany's Digital Industry Association Bitkom, stated that "Europe must develop its own robust AI products to remain effective and competitive."

He told DW that "a country possesses digital sovereignty if it has substantial capabilities in critical technologies and can independently decide from which countries to procure technologies it does not develop itself."

The German government appears to agree with this view and implemented European AI regulations in February.

In a press release, Digital Minister Karsten Wildberger announced plans to create "a streamlined AI oversight structure with clear focus on economic requirements." He pledged not to establish new "bloated bureaucracy," but rather to ensure "safe AI deployment, stronger growth, and increased innovation capacity for our companies."

When discussing potential future European tech champions, Mistral is always mentioned.

However, Lennart Kuhn of DFKI also pointed out highly innovative German companies, including Black Forest Labs, Langdock, Codesphere, Aleph Alpha, and Neura Robotics.

Bitkom chief Rohleder also emphasized local advantages. Rohleder said, "Many German companies are developing their own AI products. These include foundation models for machine or tabular data, as well as application models in fields such as medicine and education."

Establishing new structures requires time, joint efforts, and most importantly, goodwill and substantial capital.

Therefore, the news of Mistral's 12 billion euro valuation was very welcome. However, given the enormous scale of global investment in the industry, how significant is this figure?

Rohleder explicitly stated, "With 12 billion euros, a great deal can be accomplished."

But it is not merely about funding. He added that equally important is "whether it is possible to attract talent and whether the overall conditions are suitable." He stated, "AI companies need less regulation and governments as anchor customers that will apply new technologies and support their scaling."

Lennart Kuhn of DFKI wrote, "The key question is not whether Mistral can catch up with the United States in the short term." The success of AI models is not determined solely by the valuation of specific companies.

Kuhn believes that what is more important is "data sovereignty, regulatory compliance, transparency, and infrastructure control." He stated, "In these areas, European providers like Mistral can certainly develop competitive advantages."

If Germany and Europe wish to avoid falling behind, time is running out.

According to the German Research Center for Artificial Intelligence, if the European continent wants to be a true alternative to the United States, four key elements are needed.

Bernhard Rohleder of Bitkom said that if European companies like those involved in the emerging Franco-German initiative can successfully establish themselves, Europe has a chance of success.

"European AI providers must and can become alternatives to global AI players."

This article was originally published in German.

Acquiring AI models is crucial for a country's economic autonomy and national security. The U.S. government's order directing Anthropic to deny foreign users access underscores this importance.

The German Research Center for Artificial Intelligence (DFKI) and France's Inria are establishing a Franco-German AI Center. Offices will open in July with operations commencing in the fourth quarter.

Mistral AI is a French software company focused on artificial intelligence and a leading large language model provider in Europe. The company recently raised investments valued at close to 12 billion euros.

Europe needs more investment capital, significant infrastructure investment (data centers, energy, chips), and a unified single market. Stronger demand for European solutions is also critical for competition.