EU Invests €1 Billion to Boost AI Innovation in Europe
Brussels, Wednesday, 8 October 2025.
The European Commission’s €1 billion investment aims to enhance AI across sectors, supporting SMEs and fostering European technological leadership.
Strategic Investment to Foster AI Leadership
The European Commission has committed 1 billion euros to enhance artificial intelligence (AI) technologies across various sectors within the European Union. This substantial investment, as announced by Euro Commissioner Henna Virkkunen, is sourced from existing EU financing programs and aims to promote the use of European AI tools in health care, defense, and industrial production [1].
Driving Innovation and Economic Growth
This initiative is part of a broader strategy to position Europe as a leader in AI, reducing dependency on external AI producers, notably from the United States and China. According to Ursula von der Leyen, President of the European Commission, AI can lead to smarter, faster, and cheaper solutions that are crucial for economic growth and technological advancement [1][2].
Supporting SMEs and Talent Acquisition
A significant portion of the funding, specifically 58 million euros, is allocated to attract and retain AI specialists, ensuring that European enterprises have access to top talent. Additionally, 600 million euros will be dedicated to providing SMEs with access to AI data centers, facilitating the integration of AI into their operations [2].
AI Gigafactories and Future Prospects
The plan also includes the establishment of five AI gigafactories, which will significantly enhance Europe’s capability to produce and train AI models at scale. Each factory will utilize 100,000 chips, quadrupling the production capacity of existing facilities. However, the specific locations of these gigafactories remain undisclosed [1].