Tag - Supply chain security

AWS outage fuels call for Europe to limit reliance on US tech
A major outage of Amazon Web Services servers affecting multiple websites Monday morning prompted immediate calls for Europe to boost its tech sovereignty. Slack, Snapchat, Signal and Perplexity were among the affected sites. Amazon Web Services (AWS) offers cloud servers that allow these services and millions of other websites and platforms to run. Brussels is in the midst of a debate on how to achieve digital sovereignty, and what that means exactly, with cloud services at the center of the conversation. EU leaders are expected to take a position during a high-level summit meeting later this week. “Today’s outage shows how concentrated power makes the internet fragile and this lack of resilience hits our economies as a result,” technologist Robin Berjon said in an email. Berjon co-founded the Eurostack project — an initiative campaigning to make Europe self-reliant in digital services. “Europe’s dependency on monopoly cloud companies like Amazon is a security vulnerability and an economic threat we can’t ignore,” Cori Crider, executive director of the Future of Technology Institute, said in an email. According to AWS’s health dashboard, which shows a “running log of AWS service interruptions for the past 12 months,” the outage originated with servers in North America and specifically Virginia. That prompted reaction including from Ulrike Franke, senior fellow at the European Council on Foreign Relations: “My robot vacuum cleaner no longer works and can someone explain why a robot in Paris is linked to U.S. East? Talk about European digital sovereignty…” she posted on Bluesky. “These disruptions are not just technical issues, they’re democratic failures,” said Corinne Cath-Speth, head of digital at civil society group Article 19. “When a single provider goes dark, critical services go offline with it — media outlets become inaccessible, secure communication apps like Signal stop functioning, and the infrastructure that serves our digital society crumbles.” “We urgently need diversification in cloud computing,” she added. Transcription service Trint said in an email that it had experienced disruption but “customers on our EU servers should be largely unaffected.” In a statement shared with media outlets, Amazon Web Services said: “We continue to observe recovery across most of the affected AWS Services. We can confirm global services and features that rely on US-EAST-1 have also recovered. We continue to work towards full resolution and will provide updates as we have more information to share.” Asked at a briefing of reporters in Brussels on Monday, European Commission spokesperson Markus Lammert said the outage “would be a question for the companies, this is not for us to comment on.” With regard to how it had affected the Commission’s own operations, Paula Pinho, chief spokesperson for the European Commission, said: “We were more using for instance e-mails. We go back to our traditional methods.” Pieter Haeck contributed reporting.
Security
Technology
Resilience
Critical infrastructure
Infrastructure
G7 scrambles to push back on Chinese rare-earth curbs
LONDON — The U.K., Canada and the EU are mulling a coordinated response at the G7 level to China’s expansion of export controls on critical minerals at a key meeting at the end of this month. With Canada due to host G7 ministers in Toronto at the end of October, the allies are seeking to accelerate efforts to diversify away from Beijing’s dominance in the rare-earth sector.  This comes after Beijing last week announced new restrictions on foreign access to rare-earth magnets and the refined metals and alloys needed to make them over national security concerns. The move immediately raised alarm from the EU and G7 allies over supply chain security for technologies ranging from electric vehicles and wind turbines, to F-35 fighter jets and naval vessels. China mines about 60 percent and processes about 90 percent of the world’s rare-earth metals.  Ministers from the G7 are “putting our shoulders to the task, buckling down and trying to get as many concrete steps taken as we can to create alternatives for the critical minerals that have been put on export restrictions,” Canadian Energy and Natural Resources Minister Tim Hodgson told POLITICO in an interview Thursday at the end of a three-day trip to London. “We had a meeting with the G7 envoys on critical minerals while I was here, all working towards further development of a coordinated, multilateral approach to dealing with the recent restrictions,” Hodgson said. “We’re working on those as we speak and we’ll hopefully have some announcements by the time we get to the minister’s meeting in Toronto at the end of the month.” The move immediately raised alarm from the EU and G7 allies over supply chain security for technologies ranging from electric vehicles and wind turbines, to F-35 fighter jets and naval vessels. | AFP via Getty Images According to one EU official briefed on the G7 discussions, the Canadians are working on a term sheet of measures to accelerate stockpiling, activate critical mineral partnerships, and build out mining activities in a more concerted approach. EU trade chief Maroš Šefčovič this week urged the G7 to respond jointly. Šefčovič is expected to discuss the matter with Chinese Commerce Minister Wang Wentao early next week.  The European Commission is seeking to foster coordinated measures against Beijing’s curbs, two other Commission officials told POLITICO. One of them said the EU executive would launch a study of the impact of the new bans on EU industry early next week.  “It’s coercion. We need to see how we will respond,” said the other Commission official, who like the others cited in the story was granted anonymity to discuss the sensitive discussions. CODEPENDENCY RISK China’s export curbs triggered an escalatory threat from President Donald Trump to hit Beijing with 100 percent tariffs. While Washington has since scaled back the confrontation, top U.S. officials are also drawing the consequences of Beijing’s lockdown on critical minerals. “China’s actions have once again demonstrated the risk of being dependent on them, on rare earths, and for that matter, anything,” Treasury Secretary Scott Bessent said. “If China wants to be an unreliable partner to the world, then the world will have to decouple. The world does not want to decouple.” China’s export curbs triggered an escalatory threat from President Donald Trump to hit Beijing with 100 percent tariffs. | Demetrius Freeman/The Washington Post via Getty Images Hodgson and Canadian Environment Minister Julie Dabrusin will host their G7 counterparts from top global economies, including the U.S., Japan, Italy, Germany, the U.K. and France, in Toronto from Oct. 30-31. Beijing’s new restrictions are an “amping up” of curbs on critical minerals China has announced this year, Hodgson said. G7 allies, he added, are working on “a number of actual contracts” with private sector firms that they hope to announce at the Toronto meeting. The G7 is encouraging international firms and other countries to use financial tools to increase global supplies of critical minerals. “That would include things like stockpiling agreements, that would include things like off-take agreements, that would include things like potentially contract for differences on critical minerals,” Hodgson said. Ottawa is working to implement these “in real terms” following the June G7 leaders meeting in Canada, where Prime Minister Mark Carney proposed a critical minerals buying group, Hodgson said. “Canada is a potential supplier of many of those critical minerals.”  Securing supply chains of critical minerals is playing an increasingly vital role in geopolitics as China tightens the tap on supplies. The U.K. renewed trade talks with Greenland this month, promising to secure critical minerals supply chains. And in Mumbai last week, Britain’s Keir Starmer and India’s Narendra Modi buckled down to collaborate on downstream processing and research projects to “strengthen and diversify critical mineral supply chains.” During his stay in London, Hodgson met U.K. Energy Secretary Ed Miliband and Britain’s critical minerals envoy, Industry Minister Chris McDonald. “We believe that multilateralism is the way to counter non-market activities by certain states,” Hodgson said, advocating for multilateralism in response to China’s crackdown. “We don’t believe using trade as a tool of state manipulation is in anyone’s interest.” Graham Lanktree reported from London, Camille Gijs and Bjarke Smith-Meyer from Brussels and Clea Caulcutt from Paris. Doug Palmer and Jacopo Barigazzi contributed reporting.
Energy
Security
Environment
Technology
Supply chains
ASML-Mistral is Europe’s dream tech tie-up. Can it deliver?
BRUSSELS — Two of Europe’s tech powerhouses tied the knot on Tuesday in a landmark deal that bolsters a push by politicians to reduce reliance on the United States for critical technology. Dutch microchips champion ASML confirmed it was investing €1.3 billion in French AI frontrunner Mistral, one of the few European companies that is able to go head-to-head with U.S. leaders like OpenAI and Anthropic on artificial intelligence technology.  It’s a business deal soaked in politics. Officials from Brussels to Paris, Berlin and beyond have called for Europe to reduce its heavy reliance on U.S. technology — from the cloud to social media and, most recently, artificial intelligence — under the banner of “tech sovereignty.”  “European tech sovereignty is being built thanks to you,” was how France’s Junior Minister for Digital Affairs and AI Clara Chappaz cheered the deal on X. Europe has struggled to stand out in the global race to build generative AI ever since U.S.-based OpenAI burst onto the scene in 2022 with its popular ChatGPT chatbot. Legacy tech giants like Google quickly caught up, while China proved its mettle early this January when DeepSeek burst onto the scene. European politicians can showcase the ASML-Mistral deal as proof that European consumers and companies still can rely on homegrown tools. That need has never been more urgent amid strained EU-U.S. ties under Donald Trump’s repeated attacks against EU tech regulation. But the deal also illustrates that while Europe can excel in niche areas, like industrial AI applications, winning the global consumer AI chatbot race is out of reach. EUROPE KEEPS CONTROL Tuesday’s deal brings together two European companies that are most closely watched by those in power. ASML, a 40-year-old Dutch crown jewel, has grown into one of the bloc’s most politically sensitive assets in recent years. The U.S. government has repeatedly tried to block some of the company’s sales of its advanced microchips printing machines to China in an effort to slow down Chinese firms.  Mistral is only two years old but has been politically plugged in from the start, with former French Digital Minister Cédric O among its co-founders.      When the company faced the need to raise new funding this summer, several non-European players were floated as potential backers, including the Abu Dhabi-based MGX state fund. There were even rumors Mistral could be acquired by Apple. Apple’s acquisition of Mistral would have been “quite negative” for Europe’s tech sovereignty aspirations, said Leevi Saari, EU policy fellow at the U.S.-based AI Now Institute, which studies the social implications of AI. “The French state has no appetite [for] letting this happen,” he added.  Getting financing from an Abu Dhabi-based fund, conversely, would have reinforced the perception that Europe can provide the millions in venture capital funding needed to start a company, but not the billions needed to scale it.  With this week’s €1.7 billion funding round led by ASML, Europe’s tech sovereignty proponents can breath a sigh of relief. “European champions creating more European champions is the way to go forward and it needs further backing from the EU,” said Dutch liberal European Parliament lawmaker Bart Groothuis in a statement. The deal is also what officials, experts and the industry want to see more of: one where startups are backed by an established European corporation rather than a venture capitalist. “A European corporation finally investing massively in a European scale-up from its industry, even [if] it [is] not directly tied to its core business,” said Agata Hidalgo, public affairs lead at French startup group France Digitale, on Linkedin. A French government adviser, granted anonymity to speak freely on private deals, said they felt “hyped” by the news after months of uncertainty due to Mistral’s refusal to publicly deny talks with Apple. The deal is also expected to avoid any close scrutiny from Europe’s powerful antitrust regulators, which in the past have intervened in mergers and deals to keep the market competitive. Tuesday’s deal is not a full takeover and does not need merger clearance. Nicolas Petit, a competition law professor at the European University Institute, said there was “nothing to see here unless the EU wants to shoot itself in the foot with a bazooka.” “It’s a non-controlling investment, and neither ASML [nor] Mistral AI compete in any product or service market,” he added. REALITY CHECK While the incoming Dutch investment goes a long way toward keeping Mistral in European hands, it also determines the path forward for the French artificial intelligence challenger.  Mistral had already been struggling “to keep up with the race for market share” with other large language models, Saari claimed in a blogpost published last week, in which he cited numbers suggesting that Mistral’s market share is “around 2 percent.”  “Mistral was known to face challenges both technically and in finding a business model,” said Italian economist Cristina Caffarra, who has been leading the charge for European tech sovereignty through the Eurostack movement. “It’s great they found a European champion anchor investor” that will, in part, “protect them from the [venture capital] model.” Tuesday’s deal could mean that Mistral will get more support to work on industrial applications instead of a consumer-facing chatbot that venture capitalists like to propagate.  “With Mistral AI we have found a strategic partner who can not only deliver the scientific AI models that will help us develop even better tools and solutions for our customers, but also help us to improve our own operations over time,” ASML CEO Christophe Fouquet wrote in a post on Linkedin.  ASML’s main customers are the world’s biggest microchips manufacturers, including Taiwan’s TSMC and America’s Intel. The company also has a wide network of industrial suppliers, which could be leveraged as well. For Mistral, catering to European industrial applications could strengthen its business. But it could also be seen as a tacit admission that in the global AI race, Europe has to pick its battles.  Francesca Micheletti and Océane Herrerro contributed reporting.
Artificial Intelligence
Technology
Supply chains
Privacy
Industry