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'Europe doesn't realize how dangerous it is': Telecoms CEO warns of U.S. dominance in satellites, AI

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Why This Matters

The CEO of France's Bouygues warns that Europe's heavy reliance on U.S.-based satellite and AI infrastructure poses significant risks to its sovereignty and security. As U.S. companies like SpaceX dominate satellite internet, Europe's dependence could undermine its independence in critical technological sectors. This highlights the urgent need for Europe to develop its own infrastructure to maintain control and competitiveness in the digital age.

Key Takeaways

The CEO of one of France's biggest engineering groups told CNBC that Europe mustn't rely on U.S. infrastructure, warning of "dangerous" over-reliance on infrastructure like Elon Musk's Starlink.

"There [are] two things for the future where we need [Europe to] realize how big it is. This is AI, and this is satellite," Bouygues CEO Olivier Roussat told CNBC's "Squawk Box Europe" on Thursday.

"Europe doesn't realize exactly how dangerous it is to just rely on the American infrastructure."

Paris-based Bouygues does business in the construction sector, transport, and telecommunications.

The company is fronting telecoms consolidation attempts in France, where operators have engaged in intense price competition, which has put pressure on their bottom lines.

"It's not sure that we absolutely need to get a Starlink or something like this," Roussat said, adding that Europe needs something "to get some sovereignty."

Starlink, a division of the Musk-run company SpaceX, currently dominates the global satellite internet service and operates a constellation of around 10,000 satellites. SpaceX is planning to list on Nasdaq in what could be the biggest IPO ever.