Europe Commits €307 Million to AI Innovation Race Against Global Tech Giants

2026-01-15 data

Brussels, Thursday, 15 January 2026.
The European Commission launched two major funding initiatives totaling €307.3 million to accelerate AI development across member states, marking a significant escalation in Europe’s bid for technological sovereignty. The investment targets trustworthy AI services, quantum technologies, and robotics through the Horizon Europe program, with applications open until April 15, 2026. This funding represents Europe’s strategic response to maintain competitiveness against US and Chinese AI dominance while prioritizing ethical governance and digital autonomy.

Dual-Track Funding Strategy Targets Strategic Autonomy

The European Commission structured the investment across two distinct funding calls under the Digital, Industry and Space cluster of Horizon Europe [1]. The larger allocation of €221.8 million focuses on developing trustworthy artificial intelligence services, innovative data services, and securing EU strategic autonomy [1]. This primary call encompasses 15 topics and aims to develop “an agile and secure single market and infrastructure for data-services and trustworthy artificial intelligence services” [2]. The funding will support projects contributing to AI development, including actions supporting the Apply AI Strategy, robotics, quantum technologies, photonics and virtual worlds [1].

Open Internet Stack Initiative Receives Substantial Investment

Within the primary funding stream, over €40 million has been dedicated specifically to the Open Internet Stack Initiative [1]. This initiative will develop both end-user applications and inside-the-stack technologies to support European sovereign digital commons [1]. The second call allocates an additional €85.5 million across three topics, supporting open strategic autonomy in digital and emerging technologies and raw materials [1][2]. This secondary funding stream focuses on next-generation AI agents, robotics for industrial and service applications, and the development of new materials with enhanced sensing functionalities [1].

Strategic Context Within Europe’s AI Sovereignty Push

These funding calls align with the Commission’s broader Competitiveness Compass and represent part of a larger €14 billion investment in the Horizon Europe Work Programme for 2026-2027 [1][4]. The initiative builds upon the Apply AI Strategy, which was introduced in early October 2025 and is backed by €1 billion in EU funds [9]. According to Henna Virkkunen, the Commission’s Executive Vice-President for Tech Sovereignty, Security and Democracy, Europe’s goal is not merely to “catch up” with the United States or China, but to define its own path, rooted in democratic and ethical governance [9]. The Apply AI Strategy focuses on boosting AI in healthcare, defense, and public administration while helping SMEs integrate AI tools and strengthening digital infrastructure [9].

Real-World Applications Already Demonstrating Impact

European AI initiatives are already showing practical results across diverse sectors. In September 2025, the PREMIERE project culminated in a groundbreaking performance called “Re-embodied Machine” at Porto’s Coliseum theatre in northern Portugal [3]. Led by Dr. Vassilis Katsouros, Director of the Institute for Language and Speech Processing at ATHENA, this three-year EU-funded initiative involved organizations across Cyprus, France, Greece, the Netherlands, Portugal, and Spain [3]. The performance demonstrated AI and VR integration in live arts, with over 300 in-person attendees and 200 online viewers experiencing the show through VR streaming [3]. Dr. Aggelos Gkiokas, AI researcher at ATHENA and co-coordinator of PREMIERE, noted that “the actors were impressed by the usability of the VR headsets, which captured facial expressions so they could properly interact” [3].

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artificial intelligence european funding