Yes we do. We're now in a situation where schools, companies and government agencies are using Google or Microsoft to host their entire organization, and Amazon to host their services. What happens when Trump decides to introduce digital tariffs on these products? Or declare war on Denmark?
I think you misunderstand the point. Of course we need more technical capabilities in Europe. But we don't need the companies providing said capabilities to have the influence of Meta, Alphabet and co. And influence comes with size. Replacing a US based monopolist with one headquartered in the EU doesn't get rid of the monopoly.
So no, we don't need an European tech-giant. What we need is more in-house know-how and more medium sized companies.
You will not catch me defending LLMs anywhere, on fact I'm dramatically opposed to them. Your argument does not touch the need to create european tech giant.
"You use social media, and you hate social media??!"
Yes, I hate centralized social media. As there is no need to use Facebook, TikTok etc