As US Pursues Isolationist AI Policies, Middle Powers Explore Collaborative Alliances

During his visit to Europe, Canadian Prime Minister Mark Carney has the opportunity to advance a proposal he introduced in January for an “alliance of middle powers.” The concept of nations beyond the major powers of China and the US establishing their own global agenda has gained traction. Recently, a dozen states including Britain, Canada, and France backed a push to ban trade with Israeli settlements in the West Bank, demonstrating how co-ordinated collective action can bypass traditional diplomatic inertia.

As Mr Carney promotes this vision to counter the fracturing of the US-led world order, discussions in London and other capitals increasingly focus on carving out a position of strength in artificial intelligence. With frontier technology development largely concentrated outside their borders, lawmakers are exploring how individual strengths can be pooled together. US President Donald Trump recently aligned with tech figures such as Anthropic’s Dario Amodei, OpenAI’s Sam Altman, and SpaceXAI’s Elon Musk regarding controls on artificial superintelligence, reinforcing the view that the US administration has little interest in acting in concert with traditional allies.

Despite these challenges, European and allied nations retain significant capabilities. The UK remains the third-largest player in AI, while French AI firm Mistral recently completed a major fundraising round of $3.5 billion for its data centre initiatives. Additionally, the Netherlands-based ASML produces vital extreme ultraviolet lithography systems essential for the tech boom. Countries are increasingly focusing on homegrown advantages, local sovereignty, and data security to maintain access to top-tier models, particularly as firms like Anthropic withhold their latest offerings from external safety institutes.

Speaking at the Institute for Government, British Labour MP Emily Darlington emphasized that cooperation is becoming essential for middle powers to build a trusted network that secures economic opportunity and national security. She highlighted Canada’s mineral wealth as vital to both technology development and international defence, aligning with Mr Carney’s proposal for a “Defence Bank” to fund necessary industrial growth.

Addressing the risks of heavy reliance on US or Chinese tech giants, Ms Darlington noted that technological sovereignty is closely tied to future defence strategies. To address these vulnerabilities, Mr Carney is exploring new partnerships, including a potential association agreement for Canada with the EU, which could offer a framework for tackling broader competitiveness and trade challenges.