EU-Sovereign AI: Why We Don't Put Inference in the US Cloud
When we build a chatbot for a client project, generate a product image or clone a voice, something happens in the background that almost nobody talks about: the actual compute work runs on servers in the United States, nearly every time. Replicate, fal.ai, OpenAI, Together, half the industry sits there. For a German tax firm or a hotelier on Mallorca, that means their prompts, images and…
The current AI revolution involves sending a significant amount of customer data from numerous small businesses through American data centers, often without anyone even asking the question. In response, the EU has adopted a strategy called sovereign AI, which keeps the compute, models, and contracting party all within European borders and under European law, avoiding the US CLOUD Act.
This approach ensures that the data remains within the EU and is subject to GDPR regulations, providing legal certainty and trust for small businesses. For example, Socaity, a European company with servers located in Palma de Mallorca, offers AI models for image, video, voice, 3D, and text recognition through a single API, with a European point of contact and GDPR-compliant contracts.
The shift to EU-sovereign inference is changing the way small businesses approach AI implementation, prioritizing legal compliance and trust over cost savings.
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