Germany and Europe's AI sector has strong research but few models, limited compute, and regulations that favor US competitors
A scientific advisory body to the German federal government paints a sobering picture of Germany as an AI hub in its 2026 annual report: strong research output, but hardly any homegrown models, too little compute capacity, and a General Data Protection Regulation (GDPR) that slows European developers while US models operate freely on the EU market. A proposed "28th regime" aims to finally open the fragmented EU single market for startups, and the experts are also calling for radical reforms within Germany's armed forces.
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