Netherlands Needs €4 Billion Investment to Compete in Global AI Race

2026-01-10 data

Amsterdam, Saturday, 10 January 2026.
Dutch innovation leaders warn that Europe faces its ‘last realistic chance’ to maintain AI competitiveness as global rivals pour massive resources into technology infrastructure. The call for €4 billion over five years reflects urgent concerns about the Netherlands losing its innovation leadership position in artificial intelligence and deeptech sectors amid intensifying international competition.

Critical Timing as Global AI Competition Intensifies

The Netherlands finds itself at a pivotal juncture in the artificial intelligence landscape, with Dutch compute scale-ups requiring over €4 billion over five years, primarily in Series C+ rounds [3]. This substantial funding requirement comes as former ASML CEO Peter Wennink presented a stark warning on December 12, 2025, that without a productivity leap and technology investment, Dutch prosperity will erode, leading to a potential fiscal gap exceeding €100 billion per year by 2035 [3]. The urgency of this moment cannot be overstated, as the Netherlands is currently considered in “pole position” in compute technology [3], but this advantageous position requires immediate strategic investment to maintain.

The Hardware Sovereignty Imperative

According to Bernardo Kastrup, founder and CEO of Euclyd, the path to AI sovereignty lies not in software development but in controlling the underlying hardware infrastructure [1]. “To ensure the survival of its way of life, Europe must thus have the means to control the deployment of AI in its territory, so it happens on our terms,” Kastrup argues [1]. This perspective challenges conventional wisdom about AI competitiveness, as Kastrup dismisses the notion that “aligned” European AI models can achieve true sovereignty, comparing misguided software-focused approaches to “prescribing brain surgery to address improper education” [1]. The current AI boom relies heavily on graphics processors (GPUs) originally designed for video games, creating inefficiencies that European innovators believe they can address [1].

Energy Efficiency Crisis in AI Infrastructure

The energy demands of current AI infrastructure present both a challenge and an opportunity for European innovation. The International Energy Agency projects that AI data centers could consume nearly 1,000 TWh of electricity by 2030 [1], forcing data centers to plan nuclear plants to meet power requirements [1]. Kastrup’s company, Euclyd, claims to have achieved a breakthrough in this area, developing systems up to 100 times more efficient than current GPU-based solutions [1]. “NVIDIA’s greatest advantage is also their Achilles’ heel: they are now stuck with an entire paradigm and ecosystem that is catastrophically inefficient,” Kastrup states [1]. This inefficiency stems from GPUs treating AI workloads as graphics-intensive problems, creating opportunities for purpose-built AI hardware to capture market share [1].

European Strengths and Investment Reality

Despite facing intense competition from Asia and the United States, Europe possesses significant technological assets that could form the foundation of AI hardware sovereignty. The continent boasts advanced planar chip development at CEA-Leti, cutting-edge packaging technologies at IMEC, power electronics leadership through Infineon, AI system expertise at NXP Semiconductors, and CPU development at SiPearl [1]. However, the challenge extends beyond technical capability to financial resources and strategic coordination. Recent investment activity demonstrates both progress and limitations: Qualinx B.V. secured €20 million to bring its ultra-efficient satellite communication chip into production ahead of schedule [7], while Invest-NL’s Deep Tech Fund has made strategic investments including €6.3 million in QuantWare and €4.8 million in Innatera [6]. Yet these individual investments, while significant, fall short of the systematic €4 billion commitment that industry leaders argue is necessary to maintain European competitiveness in the global AI race. Kastrup remains optimistic that “European AI sovereignty across the entire value chain can be achieved before this decade is out” [1], but this timeline requires immediate and substantial financial commitment from both public and private sectors.

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AI investment Dutch deeptech