Ericsson CEO says Europe is tech ‘museum’ and China ahead on AI


Ekholm compared Europe’s sluggish move to 5G unfavorably to China, with the Asian nation better set up to adopt AI at scale thanks to more sophisticated mobile infrastructure. — Bloomberg

Europe risks falling behind in artificial intelligence if it doesn’t speed up development of its networks, according to Ericsson AB chief executive officer Borje Ekholm.

Speaking to Bloomberg News at MWC Barcelona, Ekholm compared Europe’s sluggish move to 5G unfavorably to China, with the Asian nation better set up to adopt AI at scale thanks to more sophisticated mobile infrastructure.

"China has already built out a 5G standalone network,” he said. "They’re in a very good position, based on small language models, to develop use cases.”

"Europe has elected to be a museum,” he added. "That’s a choice European citizens have to live with.”

The Swedish networking equipment maker, along with its rival Nokia Oyj, has struggled with weak demand for years as anticipated carrier spending on 5G technology failed to materialise. The company announced plans to cut about 1,600 jobs in its home country in January as part of a wider effort to trim costs.

At MWC, the telecommunication industry’s biggest annual gathering, players sought to hitch themselves to the biggest beneficiaries of the AI boom.

Ericsson is part of a collaboration led by chipmaker Qualcomm Inc to develop AI-ready 6G networks. Nokia is already partnering with Nvidia Corp on a similar effort, receiving US$1bil (RM3.93mil) in investment last year from the chipmaker.

The rise of AI services and hardware is expected to increase the load on carriers, with Ekholm pointing to real-time information fed to augmented reality glasses as an example – a segment so far dominated by Meta Platforms Inc and its smart Ray-Ban glasses. Faster networks would also benefit business users, he said.

Ekholm has been an outspoken critic of European regulators, urging them to allow more consolidation and to spend more on technology.

China, whose 5G network was largely built by Ericsson rival Huawei Technologies Co., has a bustling ecosystem of AI developers, from the big internet incumbents like Alibaba Group Holding Ltd to startups like Zhipu and MiniMax. Those companies in recent weeks rolled out several new AI models that hit high marks in global benchmarks for open-source AI. – Bloomberg

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Tech News

Google disrupts hackers using AI to exploit an unknown weakness in a company's digital defence
Wearables increasingly look to AI to predict health problems before they happen
Developer of education tool Canvas issues apology after hack
Ex-OpenAI exec Sutskever says he spent a year gathering proof of alleged Altman dishonesty
Microsoft, Google, xAI security test details deleted from US government website
Family of Florida mass shooting victim sues OpenAI in US court
Netflix sued by Texas for allegedly spying on children, addicting users
California county sues Meta over scam ads
SoftBank's Son considers up to $100 billion investment in France, Bloomberg News reports
OpenAI creates new unit with $4 billion investment to aid corporate AI push

Others Also Read