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It's still much more sovereign AI than renting cloud from the country who wants to invade them though.

That is unironically more sovereign than using any US-developed AI. GLM 5.3 is cutting-edge for cybersecurity tasks, while the US frontier forces KYC/background checks for cyber capabilities.

Well in the same way as all the solar panels come from China, as well as all batteries.

EU is an open market - it exports a lot of products, but they are of high value. The AI spending is simply not high enough value so that it is picked up.