Key Takeaways
- EU is launching a €200 billion initiative to lead in AI, focusing on AI gigafactories.
- €20 billion will fund AI gigafactories for training large AI models.
- France is investing €109 billion in AI.
- Paris AI Summit highlights Europe’s push to compete with US and China in AI infrastructure.
The European Union (EU) will invest an unprecedented €200 billion (about $208 billion) into its artificial intelligence capabilities to compete with the US and China, and establish Europe as a global AI leader.
The announcement was made at the Artificial Intelligence (AI) Action Summit in Paris by Commission President Ursula von der Leyen. She revealed that €50 billion ($52 billion) funding will come on top of the €150 billion (about $156 billion) already pledged by the European AI Champions Initiative, a collective of private investors. “We want Europe to be one of the leading AI continents, and this means embracing a way of life where AI is everywhere,” said Von der Leyen.
“Too often I hear that Europe is late to the race where the United States or China have already gotten ahead. I disagree, because the AI race is far from being over. We’re only at the beginning. The frontier is constantly moving. Global leadership is still up for grabs,” she added.
200-billion-euro InvestAI initiative
The €200 billion “InvestAI initiative” includes the creation of a €20 billion European fund to “supercharge” the development of AI gigafactories across the EU, aiming to make Europe a global leader in AI infrastructure and innovation.
InvestAI is set to drive the development of cutting-edge AI infrastructure, enabling the open, collaborative advancement of the most complex AI models. These models are essential for breakthroughs in sectors such as healthcare, research, and scientific discovery, promising to accelerate innovation across the continent.
With the global demand for AI-driven solutions growing, InvestAI will ensure that Europe remains competitive in key sectors, including healthcare, robotics, biotech, mobility, manufacturing, and climate change.
Role of AI Gigafactories
At the core of the InvestAI initiative is the development of AI gigafactories, specialized facilities designed to train very large AI models. These models are crucial for breakthroughs in areas such as medical research and scientific discovery, requiring massive computing power. The gigafactories will feature up to 100,000 of the latest-generation AI chips, representing a significant leap in computational capability compared to existing AI infrastructure.
The gigafactories will be open platforms that enable collaborative innovation. Unlike traditional proprietary systems controlled by a handful of large players, these gigafactories will be accessible to a wide range of European companies, from small startups to large multinational corporations.
The EU Commission has already announced the creation of seven AI factories, with plans for additional facilities to follow. These factories will be located at leading research and technology hubs across Europe, including Barcelona (Barcelona Supercomputing Centre), Bologna (CINECA – Bologna Tecnopolo), Kajaani (CSC), Bissen (LuxProvide), Linköping (University of Linköping), Stuttgart (University of Stuttgart), and Athens (GRNET).
Vision for Europe’s AI Future
During the summit, President Ursula von der Leyen emphasized the transformative potential of AI. “AI will improve our healthcare, spur our research and innovation and boost our competitiveness. We want AI to be a force for good and for growth,” said Von der Leyen. “We are doing this through our own European approach – based on openness, cooperation, and excellent talent.”
Her vision for InvestAI is clear: “This unique public-private partnership, akin to a CERN for AI, will enable all our scientists and companies – not just the biggest – to develop the most advanced very large models needed to make Europe an AI continent.”
This partnership will allow for the pooling of resources, ensuring that companies across the continent have the support they need to push the boundaries of AI research and development. As Nadia Calviño, President of the European Investment Bank, stated: “Together with the EU Commission, the EIB Group is stepping up support for Artificial Intelligence, a key driver of innovation and productivity in Europe.”
Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy, described the initiative as a “historical day” for Europe, emphasizing that the creation of AI gigafactories would unlock new opportunities for entrepreneurs and innovators. “By putting together our resources, we will enable AI entrepreneurs to innovate and scale up in the most demanding fields of AI,” Virkkunen added.
France unveils 109 billion euro AI investment
The InvestAI announcement comes shortly after French President Emmanuel Macron revealed that France would invest €109 billion ($113 billion) in AI, positioning it as a direct response to the U.S.’s $500 billion Stargate AI data center project.
Macron announced the initiative at the Paris AI summit (Feb 10-11, 2025) which was attended by U.S. Vice President J.D. Vance, Canadian Prime Minister Justin Trudeau, Chinese Vice Premier Zhang Guoqing, and Indian Prime Minister Narendra Modi alongside European leaders like Ursula von der Leyen and German Chancellor Olaf Scholz. Tech leaders including Sundar Pichai of Google, Arthur Mensch of Mistral, Sam Altman of OpenAI, Dario Amodei of Anthropic, and Demis Hassabis of Google DeepMind gathered at Paris’s historic 125-year-old Grand Palais.
These investments aim to close the AI infrastructure gap with global leaders China and the U.S., who have spearheaded the development of advanced AI models like ChatGPT and DeepSeek. The EU is also ensuring its regulatory edge, having enacted the AI Act last year, becoming one of the first to introduce comprehensive AI regulations.
While the U.S. and UK refrained from signing the Paris AI summit’s declaration on ethical AI, commitments from France include support from the United Arab Emirates (UAE), U.S. and Canadian investment funds, as well as major French companies such as Iliad, Orange, and Thales. The UAE is also collaborating with France on a €30 to €50 billion project for a one-gigawatt AI data center in France, marking a significant collaboration in AI development.
