--- title: "Europe risks dependence on Chinese AI models, former Google executive Eric Schmidt warns" type: "News" locale: "en" url: "https://longbridge.com/en/news/273115527.md" description: "Europe risks becoming overly dependent on Chinese AI technology, warns former Google executive Eric Schmidt. He emphasizes the need for significant investments in open-source AI labs and addressing high energy costs to remain competitive. Schmidt highlights the contrast between closed-source models favored by American companies and China's open-weight systems. He stresses that without substantial funding for European AI models, Europe may end up relying on Chinese alternatives, which could be detrimental. Additionally, he points out the importance of building more data centers to support AI development in Europe." datetime: "2026-01-20T16:49:54.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/273115527.md) - [en](https://longbridge.com/en/news/273115527.md) - [zh-HK](https://longbridge.com/zh-HK/news/273115527.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/273115527.md) | [繁體中文](https://longbridge.com/zh-HK/news/273115527.md) # Europe risks dependence on Chinese AI models, former Google executive Eric Schmidt warns **Europe risks becoming reliant on Chinese artificial intelligence technology unless it makes major investments in its own open source AI labs and tackles high energy costs, according to Eric Schmidt, the former head of Google and current tech investor.** Speaking at the World Economic Forum in Davos, Switzerland, on Tuesday, Schmidt highlighted a growing divide in how different regions approach AI development. He explained that American companies are mostly choosing closed source models that require purchase and licensing, while China focuses on open-weight and open-source systems. ### Closed versus open source models “Unless Europe is willing to spend lots of money for European models, Europe will end up using the Chinese models. It’s probably not a good outcome for Europe,” Schmidt warned. Closed-source models like Google Gemini and OpenAI’s ChatGPT keep their underlying code private and unavailable for public download or review. Though these systems provide a smoother and more consistent user experience, they cost more and offer less flexibility. China has become a leader in creating open-weight models, which allow greater transparency. ### Energy costs pose major challenge Schmidt stressed that Europe needs to tackle expensive energy costs and construct more data centers to train AI technology if it wants to stay competitive globally. He has started a data center company focused on managing the massive power requirements of this infrastructure, and has previously expressed worries about AI straining electricity supplies in the United States as well. Europe has fallen behind its American and Asian competitors in the race for AI advancement. While the continent is working to expand data centers and implement the technology, the efforts remain smaller than Silicon Valley’s. France’s Mistral AI stands as Europe’s top AI startup, reaching a value of €11.7 billion ($13.7 billion) in last year’s funding round. However, this represents just a small portion of OpenAI’s worth, which exceeds $500 billion. If you're reading this, you’re already ahead. Stay there with our newsletter. ### Related Stocks - [Alphabet Inc. (GOOG.US)](https://longbridge.com/en/quote/GOOG.US.md) - [Alphabet Inc. (GOOGL.US)](https://longbridge.com/en/quote/GOOGL.US.md) ## Related News & Research - [Google’s Gemini rolls out Canvas in AI mode to all US users](https://longbridge.com/en/news/277822208.md) - [Amid new competition, Chrome speeds up its release schedule](https://longbridge.com/en/news/277657253.md) - [Alphabet's Google Sued for 'Wrongful Death' Over Suicide Allegedly Caused by Gemini's Advice](https://longbridge.com/en/news/277803485.md) - [Tim Sweeney signed away his right to criticize Google until 2032](https://longbridge.com/en/news/277849739.md) - [Google isn’t waiting for a settlement — the 30 percent Android app store fee is dead](https://longbridge.com/en/news/277820462.md)