The European Commission unveiled a tech-sovereignty package on 3 June meant to cut the bloc's reliance on US tech: a Cloud and AI Development Act, a Chips Act 2.0, and an EU open-source strategy. The stated aim is to triple Europe's data-center capacity within five to seven years.
Read source◆ Braid Daily · 2026-06-03
EU unveils its sovereign AI stack: CADA, Chips Act 2.0, open source
Brussels puts a Cloud and AI Development Act, a follow-on chips act, and an open-source strategy on the table to cut reliance on US tech.
The lead
1
Inside the sovereignty package
3Cloud and AI Development Act (CADA)
European Commission
CADA is the package's infrastructure piece, aimed at data centers and sovereign cloud capacity across the bloc.
Read sourceChips Act 2.0
European Commission
The Commission's follow-on chips proposal adds new measures to boost the bloc's semiconductor capacity and supply chains.
Read sourceThe numbers behind the package
Bloomberg via Techmeme
CADA targets tripling EU data-center capacity over the next five to seven years, and the chips proposal would allow direct EU investment.
Read sourceModels & weights
2Alibaba ships Qwen3.7-Plus
VentureBeat via Techmeme
A multimodal proprietary model with a one-million-token context window at $2 per million tokens, which Alibaba puts at 60% cheaper than the text-only Qwen3.7-Max.
Read sourceMicrosoft's on-device Aion 1.0 models
Reddit (r/LocalLLaMA)
Microsoft showed two on-device models at Build 2026 — Aion 1.0 Instruct and Aion 1.0 Plan — pitched on agentic reasoning and tool-calling at small sizes.
Read source“next-generation small language model, smaller, faster and more efficient”
Capital & compute
4DeepSeek's first funding round
Reuters via Techmeme
DeepSeek is set to raise about $7.4 billion from investors including Tencent and CATL, at a valuation between roughly $52 billion and $59 billion.
Read sourceThe US data-center build-out is slipping
WSJ via Techmeme
JP Morgan says more than 60% of US data-center capacity planned for completion in 2027 isn't yet under construction.
Read sourceIndia's sovereign-AI ambitions hit structural limits
Bloomberg via Techmeme
India wants to build and export its own AI template, but runs into constraints including a dependence on foreign AI infrastructure.
Read sourceGitLab cuts 14% of staff in an AI pivot
WSJ via Techmeme
GitLab is cutting 350 jobs and pulling out of 22 countries as it repositions around AI-focused enterprise development.
Read sourceThreads worth pulling
5Labs chase recursive self-improvement
Financial Times via Techmeme
The FT looks at how OpenAI, Anthropic, and AI startups are pursuing 'recursive self-improvement' — AI that can improve itself with little to no human input.
Read source“recursive self-improvement”
UK publishers can block Google's AI summaries
The Guardian
The UK's competition watchdog will let media websites stop Google from using their articles in AI search summaries, after publishers reported falling click-through traffic and revenue.
Read sourceCan autonomous drones take morality onboard?
The Guardian
As autonomous weapons take a growing role in warfare, the Guardian examines the unresolved question of whether targeting decisions can carry ethics at all.
Read sourceAURA: constant-VRAM memory for robot policies
arXiv
A new paper argues the key-value cache is the right memory for datacenters but the wrong one for robots, and proposes action-gated memory that holds VRAM constant on edge hardware.
Read sourceMeasuring harmful overthinking in reasoning models
arXiv
A 'reasoning sufficiency' protocol tries to measure when large reasoning models keep generating past the answer and degrade their own reliability.
Read sourceCompanion episode
Permission Slips and Poured Concrete
Europe's pitch lands the same morning JP Morgan flags the US data-center build-out running behind, and DeepSeek raises $7.4 billion at home. The sovereignty question this week is less about model quality than about who owns the compute underneath it.