EU proposes cloud sovereignty act; Canada launches national AI plan

Governments on three continents moved to assert control over artificial intelligence this week, with the European Commission tabling sweeping sovereignty legislation, Canada publishing a detailed national strategy, and US lawmakers at both state and federal levels advancing competing frameworks.

EU proposes Cloud and AI Development Act to triple data-centre capacity

The European Commission on 3 June 2026 adopted a legislative proposal for the Cloud and AI Development Act (CADA), aimed at tripling EU data-centre capacity within five to seven years. The proposal introduces a four-tier sovereignty classification system for cloud and AI services used in public-sector procurement — a direct attempt to reduce dependence on non-European suppliers for sensitive government workloads. Achieving the target would require an estimated €200 billion in investment, mostly from private sources. CADA arrives alongside the proposed Chips Act 2.0 and an EU Open Source Strategy as part of a broader technological sovereignty package; critics, including the Computer and Communications Industry Association, warned that the tiered procurement framework risks fragmenting the single market for cloud services.

Canada's 'AI for All' sets a five-year target of 250,000 jobs and $200 billion in growth

Prime Minister Mark Carney unveiled Canada's national AI strategy on 4 June 2026, pledging to generate $200 billion in additional economic output and 250,000 AI-related jobs over five years. The plan — named AI for All — aims to lift AI adoption among Canadian businesses from 12% to 60% by 2034 and includes a National AI Literacy Initiative to offer free foundational AI training to every Canadian citizen. The government committed $500 million through a new Canadian Tech Growth Fund to take equity stakes in promising domestic AI companies and announced a Sovereign Technology Alliance with Germany. New legislation against deepfakes and surveillance-based pricing is also planned. Canadian press noted that while the strategy's ambition is substantial, its safety provisions attracted criticism for sparse operational detail.

Vermont becomes first US state to ban AI from making independent therapy decisions

Vermont's legislature gave final approval to H.816, a bill that prohibits licensed mental-health providers from using AI systems to make therapeutic decisions or deliver treatment independently. Using AI in that role would constitute "unprofessional conduct" and a breach of Vermont's Consumer Protection Act; AI may still assist with administrative functions such as scheduling and note-taking. Supporters argued that large language models lack the clinical accountability inherent in a licensed therapeutic relationship. Vermont is the first US state to draw an explicit statutory line between AI-assisted clinical administration and AI-directed care.

Bipartisan US House bill proposes three-year federal preemption of state AI laws

A bipartisan discussion draft in the US House of Representatives, the "Great American Artificial Intelligence Act of 2026", was introduced by Reps. Jay Obernolte (R-Calif.) and Lori Trahan (D-Mass.). The proposal would establish a federal AI governance framework while temporarily preempting state AI laws for three years to allow a unified national system to take shape. It would codify the Centre for AI Standards and Innovation, require frontier-model developers to report critical safety incidents, and direct the Government Accountability Office to evaluate progress in federal AI adoption. The bill arrives as Illinois, Vermont, California and other states are already legislating independently, creating pressure on Congress to act before a patchwork of divergent rules sets in.

California orders agencies to study AI's impact on jobs as Assembly advances labour bill

California Governor Gavin Newsom signed Executive Order N-6-26, directing state agencies to track AI-driven workforce disruption, identify early warning indicators, and develop policy responses for workers displaced by automation. The order was paired with Assembly Bill 2545, which passed the California Assembly and would mandate regular government assessments of AI's effect on the labour market. California has the largest technology workforce of any US state, and its findings are expected to carry significant weight in federal policy discussions. The moves reflect growing consensus that the pace of AI deployment is outrunning existing worker-support frameworks.

SpaceX files for $75 billion IPO to fund xAI expansion

SpaceX has announced plans to raise up to $75 billion in an initial public offering this month, targeting a valuation of approximately $1.75 trillion — which would make it the largest stock market debut in history. A significant share of the proceeds is expected to fund the expansion of xAI, Elon Musk's AI research company. The announcement follows Anthropic's confidential draft S-1 filing — Anthropic is currently valued at approximately $965 billion — and OpenAI's expected move toward a public listing. Together the three companies are seeking to raise well over $100 billion from public markets to sustain frontier AI research and infrastructure at a scale with few historical comparisons.