EU Allocates €200 Billion for AI Advancement Projects

2025-02-12 data

Brussels, Wednesday, 12 February 2025.
The European Union commits €200 billion to boost AI competitiveness, focusing on developing gigafactories to accelerate AI model training and deployment across Europe.

A Historic Investment Push

In a landmark announcement at the AI Action Summit in Paris on February 11, 2025, European Commission President Ursula von der Leyen unveiled what she described as the ‘largest public-private partnership in the world for the development of trustworthy AI’ [4]. The initiative will mobilize €200 billion ($206.5 billion), with €50 billion coming directly from the EU and €150 billion from private investors and industry [4][5]. This strategic investment aims to position Europe as a formidable competitor in the global AI race, with von der Leyen asserting that ‘the AI race is far from being over’ [4].

Gigafactories and Infrastructure Development

A significant portion of the investment, €20 billion, will be specifically allocated to establishing AI gigafactories [1][5]. These facilities will be equipped with approximately 100,000 last-generation AI chips [1], enabling the collaborative development of complex AI models. Seven initial AI factories were announced in December 2024, with five more facilities in the pipeline [1]. The initiative emphasizes open development and industrial applications, focusing on leveraging Europe’s manufacturing data advantage [4].

Private Sector Engagement

Over 60 European companies, including industry giants Airbus and Volkswagen, have pledged their support for the initiative [5]. This broad industrial backing demonstrates the private sector’s commitment to advancing European AI capabilities. The investment strategy aligns with the EU’s broader AI policy framework, which emphasizes excellence and trust while ensuring safety and fundamental rights [2]. The Commission plans to coordinate these investments through existing programs like the Digital Europe Programme, Horizon Europe, and InvestEU [1].

International Context and Competition

This massive investment comes as European nations individually strengthen their AI positions. France, for instance, has announced a separate €109 billion ($112.6 billion) private investment plan for its AI sector [6]. The EU’s initiative appears to be a direct response to similar large-scale investments in other regions, with von der Leyen emphasizing that Europe’s unique approach to AI development, particularly in industrial applications, could give it a competitive edge [4]. The investment strategy aims to ensure that European companies have access to AI computing power through supercomputers, following a collaborative model similar to CERN [4].

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AI investment European technology