Product Lifecycle Management (PLM) systems across Europe are rapidly moving to the cloud. However, three recent developments have reignited the debate over whether this transformation is truly secure—or inherently risky. Microsoft’s retreat from its “sovereign cloud” claims, Anthropic’s reversal on its data usage policy, and ASML’s (Advanced Semiconductor Materials Lithography) bold move to keep Mistral AI out of Apple’s hands all send powerful strategic signals to PLM leaders. These events affect far more than just technology—they directly touch on Europe’s data sovereignty, intellectual property, and AI security.

Microsoft Admits EU Sovereignty Won’t Hold

In a statement with profound implications, Microsoft France’s legal director said under oath in July 2025 that if U.S. authorities request data from Azure’s EU data centers, Microsoft will comply—even if that contradicts EU data protection laws. As reported by Forbes, this admission dismantles the illusion that simple data residency in EU regions guarantees protection from U.S. legal reach under the CLOUD Act.

Sovereign Cloud & PLM SaaS Implications

Dassault’s Outscale provides a sovereign cloud footprint in Europe, marketed as a SecNumCloud-certified alternative to AWS and Azure. But outside regions where Outscale has infrastructure, it still relies on AWS, creating exposure. Meanwhile, OVHcloud (with its 2023 Gridscale acquisition), T-Systems, and Orange Business are also scaling EU-sovereign offers aligned with GAIA-X.

The problem is that most major SaaS PLM platforms still sit on U.S. hyperscalers. Teamcenter X runs on both Azure and AWS, PTC Windchill+ and Creo+ are delivered via Azure, and Autodesk Fusion / Onshape lean on AWS. With Microsoft publicly confirming CLOUD Act compliance, the sovereignty risks embedded in these mainstream platforms are now unavoidable without a dedicated sovereign-cloud alternative.

Anthropic Reverses Course on Prompt Privacy

On August 28, 2025, Anthropic updated its Consumer Terms: unless users opt out by September 28, consumer chat transcripts (from Free, Pro, Max, and Code tiers) will be used to train its models. Enterprise customers are exempt. This move, covered by sources like Anthropic’s own newsroom and analyzed by outlets like TechCrunch, sent a clear warning about the hidden costs of public AI tools.

Anthropic’s Decision: The RAG or Local Model Pivot

Anthropic’s reversal is a critical warning. If consumer prompts are now fair game for training data, companies can no longer allow employees to casually use public AI tools for work. This will inevitably accelerate two major shifts worldwide:

1. RAG-first AI deployments: Enterprises will demand that vendors confine data to Retrieval-Augmented Generation (RAG) contexts, where user prompts and proprietary documents are explicitly excluded from model training.
2. Local/controlled LLMs: Risk-averse companies will increasingly deploy local models such as Llama, LM Studio, or other enterprise-licensed builds where no data ever leaves their secure perimeter.

For PLM and manufacturing, this matters because engineers are already pasting CAD notes, BOMs, and supplier documents into AI assistants. Without policies, that data could end up training the very models competitors will later use.

ASML Protects Mistral from Apple

In September 2025, Dutch semiconductor giant ASML led a €1.7B Series C round for Mistral AI, putting in €1.3B and becoming its largest shareholder (~11 %). As reported by Reuters, the move kept France’s flagship AI unicorn in European hands and out of Apple’s reach.

Impact on Dassault Systèmes AI Strategy

For Dassault Systèmes, this development is far more than symbolic. The company’s AI roadmap is heavily built on strategic acquisitions and alliances: Exalead (2012) for search and analytics, Proxem (2020) for natural language processing, NuoDB (2020) for distributed databases, Outscale (2012) for sovereign cloud, and now a close alliance with Mistral.ai. Dassault has also announced AURA, its agentic copilot for PLM, which is designed to integrate these powerful building blocks. An Apple acquisition of Mistral could have severely undermined this ecosystem-driven strategy; ASML’s move ensures its continuity and preserves a key European alliance.

What This Means for PLM in Europe

What PLM Leaders Need to Do Now

The message from these events is clear: inaction is no longer an option. Leaders must be proactive to protect their intellectual property.

• Audit your vendors: Ask the tough questions. Where is your PLM data truly hosted? Who holds the encryption keys? Which nation’s jurisdiction ultimately applies to your data?
• Set usage rules: Immediately define and enforce clear policies on what can and cannot be pasted into public AI tools. Mandate the use of enterprise-grade or locally deployed models for any sensitive data.
• Push your vendors: Demand transparency from Siemens, PTC, Autodesk, and Dassault. Ask for their official position on CLOUD Act exposure, their policies on prompt data training, and their roadmaps for sovereign hosting solutions.
• Monitor regulation: Stay informed. The EU AI Act is not optional, and sovereign requirements across Europe are only getting stricter.

Conclusion: The Open Question

PLM is moving to SaaS, but sovereignty pressure is growing. Will Siemens, PTC, Autodesk, and others migrate their European SaaS platforms to sovereign clouds like OVHcloud or Outscale—or will manufacturers themselves have to force the shift, or fall back to on-premises for critical IP? The vendors who answer this first may set the pace for the next decade of PLM.

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Michael Finocchiaro

Senior Industry Analyst at Finocchiaro Consulting, LLC

Michael Finocchiaro has 30+ years in PLM, Digital Twin, and AI for Manufacturing. He’s worked with IBM, Dassault, HP, and PTC, helping companies like Airbus, GE, and Safran innovate with AI-driven Digital Threads.

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