US Proposes AI Partnership With EU on Chips, Supply Chains

The United States has formally proposed an artificial intelligence partnership with the European Union centered on securing semiconductor supply chains and critical infrastructure, according to Bloomberg, which first reported the initiative.

The proposal comes as Washington seeks to build a transatlantic alliance to counter China's growing influence in AI and chip manufacturing. A draft statement reviewed by Bloomberg outlines the partnership's scope, which extends beyond software and algorithms to the physical infrastructure that makes AI possible.

Scope of the proposed partnership

The draft statement emphasizes "the critical importance of the physical backbone for artificial intelligence — from critical minerals and energy to computer and semiconductor manufacturing." This language signals that the partnership would address multiple layers of the AI technology stack, from raw materials extraction through chip fabrication to data center operations.

According to the document, both sides "share the view that the future of AI should be built on a foundation of trusted collaboration, economic security, innovation, and fair competition." The framing suggests the partnership would encompass both regulatory coordination and industrial policy.

Why it matters

This proposal represents a strategic shift in how the US approaches AI competition with China. Rather than focusing solely on export controls or domestic subsidies, Washington is attempting to formalize supply chain cooperation with its closest democratic ally. If implemented, the partnership could create a Western bloc for AI infrastructure that mirrors existing technology alliances in areas like telecommunications security. The inclusion of critical minerals and energy also acknowledges that AI leadership depends on securing resources far upstream from chip fabs and cloud providers.

Geopolitical context

The timing of the proposal reflects intensifying competition with China across the AI value chain. Beijing has invested heavily in domestic semiconductor production and has secured access to critical mineral supplies in Africa and Latin America. By contrast, the US and EU have struggled to coordinate their respective industrial policies, despite shared concerns about technological dependence on China.

The partnership proposal does not specify implementation mechanisms or funding commitments, according to the draft statement reviewed by Bloomberg. Those details would likely be negotiated in subsequent discussions between US and EU officials.

Bloomberg's Alberto Nardelli first reported the partnership proposal on June 25, 2026.