Cloud computing

US cloud dominance sparks debate about Europe’s digital sovereignty

European technology leaders are increasingly questioning the long-held assumption that information technology operates outside politics, amid growing concerns about reliance on US cloud providers and digital infrastructure.

At HiPEAC 2026, Nextcloud chief executive Frank Karlitschek argued that software has become an instrument of power, warning that Europe’s dependence on American technology firms exposes organisations to legal uncertainty, rising costs, and geopolitical pressure.

He highlighted conflicts between EU privacy rules and US surveillance laws, predicting continued instability around cross-border data transfers and renewed risks of services becoming legally restricted.

Beyond regulation, Karlitschek pointed to monopoly power among major cloud providers, linking recent price increases to limited competition and warning that vendor lock-in strategies make switching increasingly difficult for European organisations.

He presented open-source and locally controlled cloud systems as a path toward digital sovereignty, urging stronger enforcement of EU competition rules alongside investment in decentralised, federated technology models.

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Netherlands faces rising digital sovereignty threat, data authority warns

The Dutch data protection authority has urged the government to act swiftly to protect the country’s digital sovereignty, warning that dependence on overseas technology firms could expose vital public services to significant risk.

Concern has intensified after DigiD, the national digital identity system, appeared set for acquisition by a US company, raising questions about long-term control of key infrastructure.

The watchdog argues that the Netherlands relies heavily on a small group of non-European cloud and IT providers, and stresses that public bodies lack clear exit strategies if foreign ownership suddenly shifts.

Additionally, the watchdog criticises the government for treating digital autonomy as an academic exercise rather than recognising its immediate implications for communication between the state and citizens.

In a letter to the economy minister, the authority calls for a unified national approach rather than fragmented decisions by individual public bodies.

It proposes sovereignty criteria for all government contracts and suggests termination clauses that enable the state to withdraw immediately if a provider is sold abroad. It also notes the importance of designing public services to allow smooth provider changes when required.

The watchdog urges the government to strengthen European capacity by investing in scalable domestic alternatives, including a Dutch-controlled government cloud. The economy ministry has declined to comment.

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Major layoffs at Amazon reflect tech sector shift toward AI-driven growth

Amazon is implementing a major round of job cuts while investing more heavily in AI and cloud infrastructure. The latest announcement brings planned reductions to roughly 30,000 roles across corporate teams worldwide.

Senior vice president Beth Galetti said the layoffs aim to reduce management layers, speed up decision-making, and remove organisational bureaucracy. Media reports suggest the cuts represent close to 10 percent of Amazon’s global office workforce, while warehouse and logistics roles remain unaffected.

No specific divisions were named, with the company stating that each team will continue reviewing capacity and operational efficiency. Amazon previously reported spending $1.8 billion on severance linked to restructuring efforts, with full-year financial results due in early February.

The reductions mirror a broader trend across big tech, with Microsoft, Meta, ASML, HP, and Oracle also trimming white-collar management roles. Executives across the sector have framed the changes as cultural and structural rather than budget-driven.

At the same time, Amazon is boosting AI, cloud, and chip investments through AWS, including over $35 billion in data centre expansion in India amid rising competition.

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SoftBank plans massive new investment in OpenAI

SoftBank is in discussions to invest an additional $30 billion in OpenAI, as the Japanese conglomerate deepens its commitment to the AI pioneer. The potential funding round could reach $100 billion, valuing OpenAI at approximately $830 billion.

Chief Executive Masayoshi Son has taken an aggressive approach in the AI race, following a $41 billion investment last year that secured an 11 percent stake. OpenAI is facing increasing operational costs to train and maintain its AI models while competing with Alphabet’s Google.

Both SoftBank and OpenAI are also investors in Stargate, a $500 billion project to build AI data centres critical to US efforts to maintain a technological edge over China. The ambitious plan highlights the strategic importance of AI infrastructure in the global market.

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OpenAI prepares ad rollout inside free ChatGPT service

Advertising is set to be introduced within the free ChatGPT service, signalling a shift in how the platform will be monetised as its user base continues to expand rapidly. The move reflects OpenAI’s plans to turn widespread adoption into a sustainable revenue stream.

The company confirmed that ad testing will begin in the coming weeks, with sponsored content shown at the bottom of relevant ChatGPT responses. OpenAI said advertisements will be clearly labelled and separated from organic answers.

ChatGPT now serves more than 800 million users globally, most of whom currently access the service at no cost. Despite the high valuation, the company has continued to operate at a loss while expanding its infrastructure and AI capabilities.

Advertising represents OpenAI’s latest effort to diversify income beyond paid subscriptions and enterprise services. Sponsored recommendations will be shown only when products or services are deemed relevant to the user’s ongoing conversation.

The shift places OpenAI closer to traditional digital platform business models, raising broader questions about how commercial incentives may shape conversational AI systems as they become central gateways to online information.

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Australia’s green energy under pressure

The renewable energy sector in Australia encounters new challenges as major tech companies establish AI data centres across the country. Projects once planned to export solar power internationally are now influenced by domestic energy demands.

Sun Cable, supported by billionaires Mike Cannon-Brookes and Andrew Forrest, aimed to deliver Australian solar energy to Singapore via a 4,300-kilometre sea cable. The project symbolised a vision for Australia to become a leading exporter of renewable electricity.

The rapid expansion of AI facilities is shifting energy priorities towards domestic infrastructure. Tech companies’ demand for electricity is creating new competition with planned renewable export projects.

Energy policy decisions now carry broader implications for emissions, the national grid, and Australia’s role in the global clean energy market. Careful planning will be essential to balance domestic growth with long-term renewable ambitions.

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Audi dramatically transforms AI-driven smart factories

Audi is expanding the use of AI in production and logistics by replacing local factory computers with a central cloud platform. The Edge Cloud 4 Production enables flexible, networked automation while reducing hardware needs, maintenance costs, and improving IT security.

AI applications are being deployed to improve efficiency, quality, and employee support. AI-controlled robots are taking over physically demanding tasks, cloud-based systems provide real-time worker guidance, and vision-based solutions detect defects and anomalies early in the production process.

Data-driven platforms such as the P-Data Engine and ProcessGuardAIn allow Audi to monitor manufacturing processes in real time using machine and sensor data. These tools support early fault detection, reduce follow-up costs, and form the basis for predictive maintenance and scalable quality assurance across plants.

Audi is also extending automation to complex production areas that have traditionally relied on manual work, including wiring loom manufacturing and installation. In parallel, the company is working with technology firms and research institutions such as IPAI Heilbronn to accelerate innovation, scale AI solutions, and ensure the responsible use of AI across its global production network.

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NVIDIA invests $2 billion as CoreWeave expands AI factory network

CoreWeave’s long-running partnership has deepened with NVIDIA to accelerate AI infrastructure deployment, including ambitious plans for multi-gigawatt AI factory capacity by 2030.

As part of the agreement, the US company is investing $2 billion in CoreWeave through the purchase of Class A common stock, signalling strong confidence in the company’s growth strategy and AI-focused cloud platform.

Both companies aim to deepen alignment across infrastructure, software and platform development, with CoreWeave building and operating AI factories using NVIDIA’s accelerated computing technologies and early access to upcoming architectures such as Rubin, Vera CPUs and BlueField systems.

The collaboration will also test and integrate CoreWeave’s AI-native software and reference designs into NVIDIA’s broader cloud and enterprise ecosystem, while NVIDIA supports faster site development through financial backing for land and power procurement.

Executives from both firms described the expansion as a response to surging global demand for AI computing, positioning large-scale AI factories as the backbone of future industrial AI deployment.

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France proposes EU tools to map foreign tech dependence

France has unveiled a new push to reduce Europe’s dependence on US and Chinese technology suppliers, placing digital sovereignty back at the centre of the EU policy debates.

Speaking in Paris, France’s minister for AI and digital affairs, Anne Le Hénanff, presented initiatives to expose and address the structural reliance on non-EU technologies across public administrations and private companies.

Central to the strategy is the creation of a Digital Sovereignty Observatory, which will map foreign technology dependencies and assess organisational exposure to geopolitical and supply-chain risks.

The body, led by former Europe minister Clément Beaune, is intended to provide the evidence base needed for coordinated action rather than symbolic declarations of autonomy.

France is also advancing a Digital Resilience Index, expected to publish its first findings in early 2026. The index will measure reliance on foreign digital services and products, identifying vulnerabilities linked to cloud infrastructure, AI, cybersecurity and emerging technologies.

Industry data suggests Europe’s dependence on external tech providers costs the continent hundreds of billions of euros annually.

Paris is using the initiative to renew calls for a European preference in public-sector digital procurement and for a standard EU definition of European digital services.

Such proposals remain contentious among member states, yet France argues they are essential for restoring strategic control over critical digital infrastructure.

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