Right now one could run an open model for most government applications and it would be good enough, you just cannot trust any of these.
So having a sovereign controlled model audit the first one would basically act like a “trust adapter”.
If the second model is cheap and fast enough, there is a business model.
You don’t even need to audit all the intermediate steps, just tool calls and end results.
Since no individual buyer cares that much about geostrategic issues, it's almost impossible to get some random European company to think about buying anything other than 'whatever US or China' are making.
There has to be very concerted push to make a difference.
Legal mandates around sovereignty (be very careful here) could make a difference.
But there will also be market reaction: US/China companies will bend on some level and provide things like 100% EU hosted and even comply with some data source stuff.
The only real path is to be more competitive as a continent.