Making the Case for a Third AI Technology Stack: A Path Toward Greater Sovereignty and Global Balance
By Brooke Tanner and Andrew W. Wyckoff | September 12, 2025
As the race for artificial intelligence (AI) dominance intensifies, a new discussion is emerging on the global stage: the potential for establishing a third, independent AI technology stack. This proposed stack, championed by Europe and ideally including the United States, seeks to diversify the current duopoly of AI powers dominated by the United States and China. Advocates argue that a third AI stack would not only bolster market competition but also cultivate innovation rooted in democratic values, and provide nations with an alternative aligned with transparency, accountability, and respect for fundamental rights.
The Current Landscape: U.S. and China Dominate
Today’s AI ecosystem is largely segmented between two major geographic clusters. The United States boasts advanced semiconductor design, cutting-edge algorithms, and dynamic applications. The Trump administration in the U.S. formalized this ambition through the 2025 release of America’s AI Action Plan, which pledges to preserve American leadership in AI and secure the full technology stack — from rare earth minerals to cloud infrastructure and model training.
China, meanwhile, has long emphasized state control over digital networks and AI technologies. Its approach counterbalances Western liberal norms and frames AI as critical for national security and strategic influence, exemplified by initiatives like the Digital Silk Road and participation in global groupings such as BRICS.
This bifurcation, while powerful, poses challenges. Countries outside these spheres face a stark choice: align with either the U.S. or Chinese AI stack or try to stay neutral, which is increasingly difficult amid geopolitical pressures. The resulting digital divide may hinder economic competitiveness, cultural preservation, and sovereign control.
Europe’s Strategic Vulnerabilities Spark Sovereignty Concerns
Europe’s ambition to forge a third AI stack arises from significant strategic vulnerabilities. The European Union accounts for only about 10% of the global microchips market — a foundational industry for AI. Moreover, 74% of EU member states rely at least partially on U.S. cloud services, with only a small minority using Chinese or European providers. Efforts to establish homegrown cloud alternatives, like the Gaia-X initiative, have struggled to gain traction.
Compounding these concerns is the persistent “brain drain” of AI startups and talent migrating out of Europe, often to American and Chinese tech hubs. Digital sovereignty remains a focal point in Europe’s policy discourse, especially after incidents such as the Snowden revelations in 2013 rekindled transatlantic mistrust over data security and government surveillance. The invalidation of the Safe Harbor and Privacy Shield data transfer agreements, coupled with the U.S. CLOUD Act’s extraterritorial reach, have intensified these worries.
In response, the European Commission has taken an assertive stance on digital regulation, crafting legislation such as the Digital Services Act, Digital Markets Act, and the AI Act to shape digital rulemaking and reduce dependency on foreign technology providers.
Why a Third AI Stack Matters Globally
The proposition for a European-led third AI technology stack carries significant global implications:
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Diversification of the Market: Breaking the U.S.-China duopoly could stimulate greater innovation by fostering competition and reducing systemic risks associated with overreliance on a limited number of providers.
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Values-Based Innovation: Europe’s vision emphasizes democratic principles — transparency, trustworthiness, accountability — which could differentiate its AI stack and influence global norms.
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Security and Autonomy: Nations would gain more control over critical AI components, from data governance to supply chains, reducing vulnerabilities related to overdependence on foreign providers.
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Environmental and Ethical Standards: The stack could pioneer stronger environmental sustainability measures and ethical AI practices.
Axel Voss, a German MEP influential in data governance, voiced skepticism about continued reliance on the U.S., stating, “We do not have a reliable U.S. partner any longer,” urging the development of a sovereign AI stack and secure European cloud infrastructure.
Challenges Ahead: Realism vs. Rhetoric
While the case for a third AI stack is compelling, the realization of such a vision faces formidable obstacles. Building sovereignty across the full AI technology stack requires tackling complex supply chains, investing heavily in semiconductor manufacturing, data centers, research talent, and cloud infrastructure — domains where entrenched powers like the U.S. and China currently dominate.
Furthermore, political will, funding, and alignment among diverse EU member states and partner countries will be critical. The path forward demands Europe to leverage not only diplomacy but also innovation and investment to transform existing initiatives into a cohesive, competitive AI ecosystem.
Conclusion: Toward a “Third Path” in AI
As the global AI competition intensifies, the emergence of a third AI technology stack led by Europe represents a strategic opportunity to balance power, nurture innovation aligned with democratic norms, and provide alternatives to the U.S. and Chinese models.
While a fully sovereign AI stack remains elusive in the near term, the initiative signals a shift toward greater digital sovereignty and technological independence. Combined with robust policy frameworks and international collaboration, this push may well chart a new “third path” in AI — one defined not only by capabilities but also by values that resonate across democracies worldwide.
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