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Europe’s Bid for AI Independence Faces Its First Major Test as EUROPA Challenges US Technology Giants

29 October 2026 at 18:54

The European Union is attempting to establish itself as a developer of advanced artificial intelligence rather than primarily a regulator and consumer of technology produced elsewhere. An Italian-led consortium developing a large open-source AI model across all 24 official EU languages will provide an important test of whether Europe’s supercomputing infrastructure can support globally competitive systems.

Europe’s efforts to establish greater control over artificial intelligence technology are entering a new phase as the EUROPA consortium, led by Italian company Domyn, advances plans to develop one of the continent’s largest open-source AI models.

The initiative, supported by the European Commission and European high-performance computing infrastructure, aims to create an advanced artificial intelligence system capable of competing with models developed by leading American and Chinese companies.

Domyn chief executive Uljan Sharka told the Financial Times on 29 October that Europe possesses the technological resources and industrial expertise required to compete in advanced AI development.

However, he also identified two obstacles: the need for greater investment and the difficulty of persuading European businesses to adopt domestically developed systems.

These challenges extend beyond the development of a single language model.

They concern whether Europe can establish a commercially sustainable AI industry while reducing dependence on technology providers headquartered outside the EU.

EUROPA and the Frontier AI Grand Challenge

The European Commission selected EUROPA in June 2026 as the winner of its Frontier AI Grand Challenge.

The competition, launched in February, was designed to support the development of a European general-purpose AI model with more than 400 billion parameters.

EUROPA’s planned model is expected to contain approximately 500 billion parameters and support all 24 official EU languages.

The consortium brings together Domyn and Germany’s Fraunhofer research organisation, including the Fraunhofer IAIS and IIS institutes.

Its work will rely on the EuroHPC network of European supercomputers.

Under the competition arrangements, the winning consortium can obtain access to as much as 2.5 per cent of EuroHPC’s total computing capacity for one year.

This allocation is intended to address one of the largest barriers to advanced AI development: the enormous computing resources required to train models at this scale.

The final system is intended to be released under an open-source licence, allowing organisations to inspect, adapt and deploy the technology.

Nevertheless, parameter count alone does not demonstrate that a model is competitive.

Its actual performance will depend on training data, architecture, computational efficiency, evaluation results and the ability to perform reliably across different tasks.

A European Model for European Languages

One of EUROPA’s distinguishing objectives is its coverage of all official EU languages.

The commercial AI market has historically been dominated by models developed primarily for English-language applications, although leading international systems increasingly support multiple languages.

For Europe, linguistic capability has particular relevance to public administration, legal services, education and cross-border business.

A model designed specifically for the European market could potentially support specialised applications involving national legislation, administrative procedures and technical terminology.

However, multilingual availability will need to be assessed against measurable performance standards.

A system capable of producing fluent responses in a particular language is not necessarily equally reliable when interpreting specialised legal or scientific information.

The consortium will therefore need to demonstrate that linguistic coverage translates into practical capabilities rather than remaining principally a technical specification.

Europe’s Supercomputers Become Strategic Assets

The EUROPA project forms part of a wider effort to use European publicly supported computing infrastructure for commercial and scientific AI development.

The EuroHPC Joint Undertaking has invested in systems intended to provide advanced computing resources to researchers, businesses and public institutions.

Additional AI-focused infrastructure is being developed through the EU’s network of AI factories.

These facilities are intended to make specialised computing capacity available to organisations that would otherwise face considerable costs when developing or adapting AI systems.

However, infrastructure ownership does not necessarily provide complete technological independence.

European supercomputing projects continue to rely on internationally sourced semiconductor technology and specialised software.

Domyn itself has described a partnership with the American technology company Nvidia in its previous model-development work.

Consequently, European AI sovereignty is better understood as a question of control over important technological capabilities than complete separation from international supply chains.

Domyn’s Smaller Model Provides an Early Example

On 20 October, Domyn announced the initial release of Domyn Edge, a separate AI model containing four billion parameters.

According to the company’s technical announcement, the system was trained from scratch using approximately 13 trillion tokens on Europe’s Leonardo supercomputer.

Domyn has committed to making the model’s weights, training code, intermediate checkpoints and datasets available under open licences.

This approach is intended to improve reproducibility and allow external developers to examine how the model was constructed.

Domyn Edge is substantially smaller than the planned EUROPA system and should not be confused with it.

Nevertheless, the project provides an example of the company’s approach to developing AI models using European computing infrastructure.

Regulation Is Only Part of the Challenge

The EU has already established an extensive regulatory framework for artificial intelligence through the AI Act.

However, legislation governing the development and deployment of AI does not, by itself, create a competitive domestic technology industry.

Europe faces competition from American companies with substantial private investment, established cloud platforms and access to large commercial markets.

Chinese developers have also expanded their capabilities, including in open-weight AI systems.

EUROPA’s commercial prospects will therefore depend on more than technical performance.

European businesses must be willing to integrate the resulting technology into their operations, while developers will require dependable access to computing infrastructure and support services.

There is also the question of whether European institutions themselves will adopt domestically developed AI systems where they meet relevant security and performance requirements.

Without sufficient demand, even a technically successful model could struggle to establish a sustainable ecosystem.

The Test Will Be Commercial as Well as Technical

Domyn has indicated that it aims to release EUROPA during 2027, although public statements have differed over the precise timetable.

The company’s leadership has discussed a June target, while an earlier technical announcement referred to the second half of 2027.

The immediate challenge is completing development and demonstrating that the model can compete on performance, reliability and cost.

The longer-term challenge concerns adoption.

If European businesses and public institutions continue relying predominantly on foreign technology, access to an advanced European alternative may have only a limited effect on the market.

Conversely, a competitive and widely adopted open-source model could offer organisations greater control over deployment, customisation and sensitive information.

EUROPA is therefore more than a publicly supported technology experiment.

It is a test of whether Europe can convert research institutions, computing infrastructure and industrial expertise into AI products capable of competing in the international market.

The outcome will depend not simply on whether Europe can build an advanced model, but on whether organisations consider it sufficiently capable and economical to use.

Lula Pledges to Develop Brazil’s Own Artificial Intelligence

26 October 2026 at 10:44
Luiz Inácio Lula da Silva announces plans for Brazilian artificial intelligence and renewable energy following his presidential election victory.

Lula plans to expand technical education and use renewable energy to attract data centers and keep information stored in Brazil.


Brazilian President-elect Luiz Inácio Lula da Silva has pledged to develop a domestic artificial intelligence system, expand technical education and attract data centers powered by renewable energy, aiming to strengthen Brazil’s technological independence and accelerate its transition to a developed economy.

RELATED: Lula Celebrates Reelection, Promises Education Reform and Sovereign AI

Speaking after his victory in the presidential runoff, Lula said Brazil must invest in mathematics and engineering to build its own artificial intelligence capabilities rather than depend on technology developed in China or the United States.

“We will teach more mathematics, more engineering, because I don’t want to depend on Chinese or American artificial intelligence; I want to create a Brazilian one,” he said.

Lula also pledged to use Brazil’s renewable energy resources to attract data centers and keep information stored within the country. The proposal forms part of a broader push to expand the digital economy and strengthen domestic technological capacity.

Text Reads: The Brazil we wish to build is a country where our elderly are cared for with dignity, women are respected, and everyone has the right to live out their faith in freedom.
It is a country that respects differences, with a State that guarantees rights for all—because to govern means to look after 215 million Brazilians, without distinction. Respect must be the starting point for us to build, together, a Brazil that is increasingly fair and humane.

“We want to transform this country from a developing country into a developed one,” he said, identifying the digital, green and creative economies as key areas for investment.

He also outlined an ambition for Brazil to play a central role in political and economic decision-making and in efforts to promote peace.

Lula promised that his next term would deliver unprecedented results, telling supporters: “I want to make a commitment: I will deliver the best term of office any president has ever had in Brazil’s history. You can be sure of that.”

The president-elect, who turns 81 on Oct. 27, dismissed concerns about his age as he prepares to take office for another term. He pledged to devote himself fully to the country’s development and to improving the daily lives of Brazilians.

“I will dedicate 20 or 24 hours a day to making this the country everyone dreams of, where people can go to sleep and wake up in complete peace of mind,” he said.

Lula also thanked voters for their support in the runoff and praised young people who took to the streets to defend democracy, crediting their participation as a key factor in his victory.

His pledges place artificial intelligence, renewable energy and digital infrastructure among the priorities he has outlined for Brazil’s next phase of development, alongside his ambition to transform the country into a developed nation.

EU Moves to Rewrite GDPR and Cookie Rules in Major Digital Regulation Overhaul

22 October 2026 at 08:00

The European Union has taken a significant step towards revising its digital regulatory framework after member states agreed proposals to amend the General Data Protection Regulation (GDPR), simplify cookie consent requirements and overhaul cybersecurity reporting obligations.

The Council of the European Union adopted its negotiating position on Wednesday, 21st October, clearing the way for negotiations with the European Parliament once MEPs establish their position.

The measures form part of the European Commission’s Digital Omnibus package, introduced in November 2025, and represent one of Brussels’ most substantial attempts to simplify the regulatory obligations imposed on businesses operating across the single market.

Changes to GDPR and personal data rules

The proposed reforms would modify several provisions of the GDPR, which has governed the processing of personal data across the EU since May 2018.

Rather than replacing the legislation, the Council wants to clarify existing obligations, particularly those concerning pseudonymised information, requests for access to personal data and the use of information in scientific research.

The agreed position retains the existing definition of personal data while introducing provisions intended to clarify when pseudonymised information can be linked to an identifiable individual.

Companies would also benefit from simplified procedures for handling manifestly unfounded or excessive data requests and from reduced information requirements in certain low-risk circumstances.

Another proposed change would extend the deadline for notifying authorities of personal data breaches, while establishing more consistent reporting templates across the EU.

For multinational companies, which currently navigate different interpretations of data protection obligations by national authorities, these provisions could reduce compliance costs and administrative duplication.

However, the changes have raised concerns among European privacy regulators.

In a joint opinion published in February, the European Data Protection Board and European Data Protection Supervisor warned that parts of the Commission’s original proposal could create legal uncertainty and undermine existing protections.

They were particularly concerned about proposals affecting the definition of personal data and the Commission’s potential role in determining when pseudonymised information falls outside GDPR requirements.

The Council’s decision to retain the existing definition addresses part of that debate, although the final legislative text remains subject to negotiations.

Fewer cookie banners for internet users

One of the most visible changes would affect the consent notices encountered by Europeans when visiting websites.

Under the Council’s proposal, additional categories of cookies and similar tracking technologies could be used without obtaining explicit consent, provided the relevant legal conditions are satisfied.

The proposed exemptions include technologies necessary to deliver a service, maintain device security or conduct audience measurement.

For website operators, publishers and online businesses, the changes could reduce the number of consent requests displayed to visitors and simplify technical compliance.

The current system has generated extensive legal disputes over whether consent is genuinely voluntary and whether tracking technologies collect information beyond what users have authorised.

EU Today has previously examined the enforcement of these obligations, including a Belgian court ruling concerning the legality of the advertising industry’s consent framework.

The latest proposal would not abolish consent requirements for commercial tracking or behavioural advertising. Technologies falling outside the permitted exemptions would remain subject to the applicable privacy rules.

Cybersecurity reporting and artificial intelligence

The package also addresses the growing number of reporting obligations imposed on European businesses under overlapping cybersecurity legislation.

The Commission originally proposed a single European reporting mechanism for certain data and cybersecurity incidents.

Member states have instead agreed to establish national entry points, supported by an EU-level information system and provisions for coordinating cross-border notifications.

The Council’s position would also clarify the legal grounds for certain uses of personal data in artificial intelligence systems and introduce safeguards for processing sensitive information in specified circumstances.

These provisions follow increasingly complicated disputes over the application of European privacy legislation to AI development and automated decision-making.

As EU Today reported in its coverage of a major GDPR enforcement case involving Uber, automated processing already presents substantial compliance risks for companies operating within the bloc.

Competitiveness drives regulatory reform

The Commission estimates that its wider digital simplification initiative could save European businesses up to €5 billion in administrative costs by 2029.

The initiative reflects pressure from European governments and business organisations to reduce the regulatory fragmentation that makes operating across multiple EU jurisdictions more expensive.

The Digital Omnibus is part of a broader legislative programme influenced by the competitiveness reports produced by former Italian prime ministers Enrico Letta and Mario Draghi.

Under the Council’s negotiating mandate, several existing data-related rules would also be consolidated, while provisions governing the protection of trade secrets would be strengthened.

The European Parliament must now determine its negotiating position before formal discussions between the institutions can begin. Until the legislation is agreed and adopted, existing GDPR, cookie consent and cybersecurity requirements remain in force.

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