EU Commits €200 Billion to AI, Launching Gigafactories for Development

The European Union is making a major push into artificial intelligence, with €200 billion earmarked for AI investment, European Commission President Ursula von der Leyen announced at the AI Action Summit in Paris.

Key Highlights of the Investment Plan

• €20 billion for AI gigafactories – These facilities will provide large-scale computing power to train advanced AI models, ensuring that both major companies and startups have the resources needed for innovation.

• Expansion of AI factories – The EU initially announced seven AI factories in December and will soon add five more, each equipped with 100,000 next-generation AI chips—four times more than current AI factories.

• InvestAI initiative – A public-private partnership aiming to become the world’s largest AI development fund for trustworthy AI. Initial financing will come from existing EU programs such as Digital Europe, Horizon Europe, and InvestEU, with additional contributions from EU member states’ cohesion funds.

• Strategic technology funding – The gigafactory initiative will be a pilot project under the EU's Competitiveness Compass, a broader strategy to boost Europe's technological growth.

Von der Leyen emphasized Europe’s commitment to AI leadership: “We want AI to be a force for good and for growth. We are doing this through our own European approach – based on openness, cooperation and excellent talent. But our approach still needs to be supercharged. This is why, together with our member states and with our partners, we will mobilise unprecedented capital through InvestAI for European AI gigafactories.”

A Response to Global AI Investments

The announcement follows French President Emmanuel Macron’s €109 billion AI investment plan, revealed earlier this week. Macron compared the initiative to OpenAI’s $500 billion "Stargate" program in the U.S.

The U.S. has also ramped up AI infrastructure spending. Last month, President Donald Trump announced a joint venture between OpenAI, Oracle, and SoftBank to invest up to $500 billion (€480 billion) over four years in AI development.

What This Means

Europe’s €200 billion AI investment marks a significant step toward global AI competitiveness. By funding AI gigafactories, the EU aims to reduce reliance on non-European infrastructure and support domestic AI innovation.

The expansion of AI computing power will benefit startups, researchers, and enterprises, ensuring they have the resources to develop advanced AI models. With growing competition from the U.S. and China, this investment positions the EU as a major player in the AI race.

As more details emerge, the impact of InvestAI and AI gigafactories will become clearer, shaping the future of AI development across Europe.

Editor’s Note: This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.