Europe

Pony.ai is expanding into Europe through a partnership with Stellantis to deploy robotaxis, starting with testing in Luxembourg and aiming for a phased rollout across European cities from 2026. Stellantis will provide electric vehicles while Pony.ai contributes its autonomous driving software. This follows Pony.ai’s ongoing robotaxi testing in Beijing and reflects the increasing competition among companies like Waymo to commercialize autonomous driving technology in new global markets. Chinese regulatory clearance for Pony.ai and WeRide could further fuel their global expansion and AI development.

Stellantis and Pony.ai are partnering to develop autonomous robotaxi services in Europe. The collaboration will integrate Pony.ai’s self-driving software with Stellantis’ AV-Ready Platform, initially focusing on battery-electric medium-size vans designed for SAE Level 4 autonomy. Testing commences in Luxembourg using the Peugeot e-Traveller, with broader European deployment planned for 2026. The partnership aims to leverage Stellantis’ LCV market leadership and Pony.ai’s expertise to revolutionize urban mobility with safer and more affordable transportation options.

Europe’s AI ambitions are threatened by increasing water scarcity. Data centers, crucial for AI, consume significant water, especially in water-stressed Southern Europe where tech giants are investing heavily. Experts highlight the lack of integrated planning, prioritizing AI over sustainability. While the EU emphasizes green computing and recycling, concerns persist about the overall water footprint, including off-site energy generation. Some regions are facing tensions and enacting restrictions due to strain on resources, prompting the industry to explore sustainable innovations like non-potable water feeds and water-efficient designs.

Stellantis (STLA) reported estimated consolidated shipments of 1.3 million units for Q3 2025, a 13% year-over-year increase. North America led growth with a 35% rise, supported by initial Ram 1500 deliveries and inventory normalization. Enlarged Europe increased by 8%, driven by new B-segment model production. Other regions saw a net 3% increase, boosted by Middle East & Africa (+21%), while South America declined by 3%. These figures are unaudited and subject to change.

Xiaomi plans to launch its EV business in Europe by 2027, including opening showrooms. Xiaomi will assess the future viability of manufacturing locally but will likely modify an existing model rather than developing a new one specifically for Europe. This move positions Xiaomi alongside other Chinese EV manufacturers competing for market share in Europe amid increasing tariffs on Chinese-made EVs. The company aims to be a top-five global player within 15-20 years, making a local factory a potential necessity.

Finnish quantum computing firm IQM secured $320 million in funding, achieving unicorn status with a valuation exceeding $1 billion. The investment will support technology development, commercial expansion, and a new software platform to broaden quantum computing accessibility. IQM aims to compete with U.S. giants in the burgeoning quantum landscape and expand sales globally, having already sold 15 quantum computers, including its Radiance and Spark models. While an IPO isn’t immediate, IQM focuses on long-term growth and solidifying its position in the next generation of computing.

Baidu’s Apollo Go and Lyft are partnering to launch driverless taxi services in Europe, starting in Germany and the UK by 2026. The plan involves deploying thousands of Apollo Go’s autonomous vehicles, leveraging Lyft’s operational expertise. This collaboration follows a similar alliance with Uber and aims to expand Apollo Go’s global reach, building on its existing fleet of over 1,000 autonomous vehicles operating in 15 cities. The goal is to provide safer, greener, and more efficient transportation options to European riders.

Europe faces deadly 2025 heatwaves as low air conditioning adoption leaves populations vulnerable amidst record temperatures. Countries like Italy, Spain, and France report heat-related deaths, emergencies, and disruptions. Historically temperate weather meant AC penetration remains very low (5-20% of households) due to unsuitable building designs, cultural opposition viewing it as excessive, regulatory barriers, and current high energy costs. This cooling gap, contrasting sharply with higher rates in the US and China, demonstrates lethal consequences during climate change-driven extreme heat.