Yes. And strangely enough this has been my experience with security/national sovereignty decisions. Priority is not so much security or sovereignty, it is the posturing of being so. Ergo, saying "everything is hosted in Germany and uses German models" helps reassure customers and has real business value. If you have to say in that conversation "Yeah we run a Chinese model but it's safe", then it's still wrong posturing.

Hopefully this will change soon. But AI and China/US skepticism is very high. Even if the person you talk to isn't skeptic, his boss may be. And even if his boss isn't, his CFO or Legal department may use it as a political lever and therefore if you can say 'everything in europe' you dodge the tension entirely.

Yeah it's dumb.