Conference Presentation, Fireside Chat, Interview
AI, Security & Economic Power: A New Playbook for Democracies | Sebastian Kurz | RAISE Summit 2026
- The U.S. economy is currently being propelled by a historic AI boom, with the sector fueling hundreds of billions of dollars in capital expenditure (CapEx) investments despite recent geopolitical volatility in energy markets.
- According to recent IMF data cited, the U.S. economy has grown between 2% and 3% year-to-year, while unemployment remains below 5%, indicating a near-full employment status.
- In a recent strategic move at the second Pax Silicon Summit in Washington, the European Union, Germany, the Netherlands, and Greece acceded to the "Paxilica" initiative, signaling strong European interest in integrating with the U.S.-led AI revolution.
- The U.S. restricted global access to the "mythos" AI model for a 30-day evaluation window to allow critical infrastructure and the financial sector to harden defenses against potential mass cyber attacks, rather than permanently denying access.
- Jacob argues that defining AI sovereignty through total vertical integration (building the entire stack in-house) would divert tens of billions of dollars and thousands of engineers from innovation to rebuilding existing technology.
- Unlike the U.S. response to the 5G era, where it banned Huawei but remained a massive buyer of Ericsson and Nokia, the U.S. advocates for an ecosystem-based approach to sovereignty involving international trade and supply chains.
- Sebastian emphasizes that while 100% economic independence is impossible in a globalized world, recent shocks like the pandemic and tensions among allies have shifted the mindset to reduce total reliance on the U.S. or China.
- The consensus is that while foundational models remain difficult for Europe to match due to U.S. and Chinese lead, sovereign AI is essential for sensitive government data, financial information, and on-premises security solutions.
- Sebastian co-founded the AI cybersecurity company "Dream" three and a half years ago to create sovereign AI solutions for nations and critical infrastructure, aiming to help non-superpowers become leaders in AI and cyber defense.
- Dream is currently valued at $3 billion and focuses on combining data analysis with AI to support intelligence and critical infrastructure against hybrid warfare and quantum threats.
- The U.S. administration's strategy to lead AI innovation includes full CapEx expensing under recent tax bills, accelerating depreciation, and increasing energy abundance by reopening 2 million acres in Anwar and offshore drilling in the Gulf of America.
- Jacob cites the Draghi report to argue that Europe must urgently simplify its regulatory framework, noting that every new regulation must be evaluated for its impact on economic growth.
- Approximately 80% of friction between the U.S. and the European Union stems from the Digital Markets Act (DMA), which U.S. officials view as a non-tariff trade barrier designed to extract revenue from wealthy American companies.
- Sebastian identifies the primary requirement for Europe to stay ahead in AI as a fundamental mindset shift: prioritizing competitiveness and economic strength to finance the region's social welfare systems.
- Sebastian confirms he remains committed to his entrepreneurial role in the private sector and has ruled out returning to politics, despite regular contact from political parties.