(March 25): Europe’s dependency on the US and China for computer hardware and cloud services puts its car industry at risk as vehicles become reliant on artificial intelligence (AI), a Mercedes-Benz Group AG executive said.

“The more we move into AI, the more we’re moving into a phase where we need a more efficient computer,” Georges Massing, a Mercedes executive working on the company’s automated-driving push, said Tuesday at an industry conference in Berlin.

Software has become a key differentiator between electric vehicles (EVs), with Tesla Inc and Chinese manufacturers like BYD Co racing ahead. European carmakers have had to seek out partnerships in Silicon Valley and China for the tech expertise needed to compete with their next generation of cars.

Politicians in Europe have argued the region should become less dependent on China and the US for high-tech parts to reduce security risks and ensure companies can get enough supplies when there’s a shortage.

“I see few European initiatives that are investing in this hardware, in high performance computers for the car,” Massing said.

After struggling for years with its own software venture, Volkswagen AG is partnering with Rivian Automotive Inc and China’s Horizon Robotics Inc to accelerate EV development. Mercedes, meanwhile, is investing in Chinese AI startup Momenta to bolster its driver-assistance systems.

Massing pointed to the industry-wide use of light-detection and ranging sensors, which are made predominantly in the US and China. Europe needs to create its own high-performance chips and cloud providers, he added.

“We have in Europe neither a cloud nor a hardware that can train these models,” Massing said.

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