The announcement is about a tool developed internally by the French government to use internally, too. This is a very wasteful approach that does not create real competitors to US giants, and it is liable to be cancelled at the next round of cost reduction...
Realistically there is zero alternative to US tech/online dominance in sight in Europe and the credible competitors are more likely to be Chinese (tiktok, temu, shein, etc.) What is happening is EU politics.
This is not just a corner of the universe, most of us are switching tools at the moment, the trend is definitively big.