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Alibaba chairman Joe Tsai says open-source AI is Europe's only realistic path to technological independence, warning against reliance on closed American AI systems.

Speaking at a technology event in Italy, Joe argued that European manufacturers should retain control of their valuable industrial data rather than feed it into proprietary AI platforms.

“You don’t want to feed it into some closed-source API,” he said, urging European businesses to adapt open-source models to their own needs.

He also argued that American export restrictions have pushed Chinese companies to innovate with fewer resources, while China's AI developers increasingly share models and research that American competitors keep proprietary.

Alibaba itself is investing heavily in AI infrastructure, using cash generated by its e-commerce business to finance its ambitions.

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