S Poddar
The European Commission has unveiled an ambitious plan to invest €200 billion in artificial intelligence, marking a significant push to enhance Europe’s AI capabilities. European Commission President Ursula von der Leyen made the announcement at the AI Action Summit in Paris, emphasizing the continent’s commitment to technological advancement.
A key part of this initiative is the allocation of €20 billion specifically for AI gigafactories. These large-scale facilities are designed to support the development and training of advanced AI models, fostering collaboration among companies and researchers. According to the Commission, such infrastructure is essential to maintaining Europe’s competitive edge in the rapidly evolving AI sector.
This announcement follows a similar move by French President Emmanuel Macron, who recently pledged €109 billion towards AI projects in France over the next few years. Macron likened this investment to “the equivalent for France of what the US has announced with ‘Stargate’,” referencing OpenAI’s $500-billion program aimed at AI expansion.
Von der Leyen reinforced the EU’s commitment to AI, stating, “We want AI to be a force for good and for growth.” She highlighted the importance of a uniquely European approach, built on openness, cooperation, and a strong talent pool.
“We are doing this through our own European approach – based on openness, cooperation and excellent talent. But our approach still needs to be supercharged. This is why, together with our member states and with our partners, we will mobilise unprecedented capital through InvestAI for European AI gigafactories,” she added.
The European initiative comes in response to major AI investments in the United States. Just last month, newly elected US President Donald Trump announced a joint venture involving OpenAI, Oracle, and SoftBank to bolster AI infrastructure in the US. The venture will kick off with an initial $100 billion (€96 billion) and aims to scale up to $500 billion (€480 billion) within four years.
AI Gigafactories: The Next Step in AI Innovation
In December, the Commission revealed plans for seven AI factories, with five more to be announced soon. These gigafactories will house around 100,000 state-of-the-art AI chips—approximately four times the capacity of current AI facilities. By significantly increasing computational power, these centers will enable both major corporations and smaller enterprises to develop and refine AI models on a large scale.
The rising demand for AI computing power has been a growing concern. Last year, French AI firm Mistral AI highlighted the intense competition for access to supercomputing resources necessary for training AI models.
To address these challenges, the EU is launching InvestAI, a public-private partnership that aims to create the world’s largest framework for trustworthy AI development. Funding for this initiative will come from existing EU digital programs such as the Digital Europe Programme, Horizon Europe, and InvestEU. Additionally, EU member states can contribute by directing resources from their cohesion funds.
The financing model for AI gigafactories will combine grants and equity investment, serving as a pilot for strategic technological advancements under the EU’s Competitiveness Compass. This broader strategy is designed to position Europe at the forefront of global AI innovation while ensuring ethical and secure AI development.
With these substantial investments, the EU is not just keeping pace with global AI leaders but is also striving to define a uniquely European approach to artificial intelligence. By leveraging its strengths in research, regulation, and collaboration, Europe aims to build a future where AI is both innovative and responsible.
