A Mozilla report finds open-source AI models are now production-ready, with European initiatives like Switzerland’s national model and the UK’s £500m Lumen Sovereign project advancing digital sovereignty. While China leads in frontier open models, Europe lags in deployment infrastructure and regulatory alignment with the EU AI
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An official UK security assessment found Microsoft cloud platforms storing sensitive police data vulnerable to compromise by foreign actors and the US government. Files include criminal records, victim statements and internal emails held by over 40 police forces across the UK. (GUARDIAN) Sensitive UK police data vulnerable to ‘compromise’ by
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French cybersecurity group Thales launches a UK-hosted version of its Luna Cloud HSM on 14 September 2026, enabling organisations to manage cryptographic keys entirely within the UK while consuming HSM capabilities as a cloud service. The move addresses growing concerns about key sovereignty beyond data residency, offering high availability
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European satellite company Open Cosmos secures €300 million to scale its satellite manufacturing and expand connectivity and Earth observation services. The funding will support OpenConstellation, ConnectedCosmos and DataCosmos platforms, with operations across the UK, Spain, Portugal and Greece. (TECH.EU) Open Cosmos secures €300M to expand satellite intelligence and connectivityEuropean
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London-based AI governance company AI Score secured $5.4 million in seed funding to expand its platform for managing generative and agentic AI across organisations. The round was led by Fuel Ventures, with participation from GALLOS Technologies and other investors. The company, founded in 2025, focuses on real-time
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Flower Labs, a Cambridge University spinout, launches Endeavor 1.0, a locally deployable AI model it claims matches OpenAI and Anthropic's leading models. The startup positions the open-source-based model as a sovereign alternative for European organisations seeking to reduce reliance on US providers. Flower Labs, founded
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Greater Manchester’s health authority refuses to adopt Palantir’s federated data platform, citing public trust concerns. The UK government faces pressure to cancel a £400 million NHS contract with the US firm amid digital sovereignty debates. The decision follows national scrutiny over Palantir’s role in UK healthcare. (WIRED)
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London-based Callosum raises €85.4 million in a Seed round led by Atomico to build infrastructure unifying AI models and chips. The funding, including support from the UK Sovereign AI Fund, aims to advance heterogeneous intelligence for strategic AI autonomy. Callosum was also named in the UK government’s
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A survey of 1,500 businesses in the UK, France and Germany found 74% fear a US government-imposed cloud 'kill switch' could disrupt operations. More than half said they could not operate for more than a day without cloud services, highlighting reliance on a small number of
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The UK Government Digital Service (GDS) and the Department for Business, Innovation, Science and Trade (BIST) are collaborating to streamline business services on GOV.UK. The initiative aims to reduce administrative burdens on businesses by 25% (£5.6bn) by the end of parliament, aligning with broader regulatory simplification efforts. (UK
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France and Germany’s intelligence agencies selected French firm ChapsVision over Palantir for a key data analytics platform, Politico reports. Spain has instructed state-backed companies to block Palantir from future public contracts, while the UK faces a 2027 decision on a £330 million NHS data platform contract. (POLITICO) Europe
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London-based AI chip startup OLIX secures a €270.5 million Series B round at a €2.8 billion valuation, two years after its founding. The funding, led by Fundomo, Arm and Hudson River Trading, aims to scale its X-1 platform and DX-1 decode accelerator for frontier AI
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New AI inference chips from OpenAI, Intel and startups like Fractile and Graphcore are set to launch in 2026, reshaping datacentre and edge AI compute. European efforts such as Fractile’s RISC-V-based architecture and Graphcore’s Izanagi chip aim to bolster digital sovereignty amid HBM memory shortages. The
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A digital sovereignty expert urges UK public sector organisations to identify critical technology dependencies and establish sovereignty guardrails. Angela Bishop of Zühlke highlights geopolitical tensions and evolving regulation as drivers of this shift to board-level priority. (THINKDIGITALPARTNERS) Digital sovereignty expert urges governments to address cloud dependency risksA digital sovereignty
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The UK’s Sovereign AI Fund, backed by Jeff Bezos, co-led a $450m Series B round for Cambridge-based AI startup CuspAI. The investment values CuspAI at $2.6bn, five times its valuation from September 2025. CuspAI develops AI systems for materials discovery in clean energy and semiconductors, with
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UK banks face cybersecurity risks due to restricted access to Anthropic’s AI model Mythos, a government-appointed adviser warns. The issue highlights the need for Britain to develop domestic AI capabilities and reduce reliance on US technology, Reuters reports. (REUTERS) UK banks face cybersecurity risks amid restricted access to
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The Bank of England will regulate critical technology firms including Amazon and Google from next week to mitigate risks to financial stability and consumer protection. The move addresses vulnerabilities linked to reliance on non-EU tech providers, aligning with broader digital sovereignty concerns in Europe. (THE GUARDIAN) Bank of England
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A report warns that over 60% of UK firms—80% of FTSE 100 companies—rely on a handful of US cloud regions, with a single outage potentially costing the economy over £1 billion in 24 hours. The findings highlight systemic digital sovereignty risks amid calls for diversification. (THEREGISTER) Britain'
European governments are reducing reliance on US defence tech contractor Palantir over security and ethical concerns. The Netherlands demands a European alternative within two years, the UK plans to end NHS contracts by 2027, and Switzerland has rejected Palantir bids at least nine times. Germany and Denmark are also seeking
