EU seeks private investment for AI gigafactories

In a bid to strengthen Europe’s AI capabilities, the EU is turning to private investment to build large-scale computing facilities.
The ECB's Claudia Buch warned that Euro zone banks must prepare for geopolitical shocks, including liquidity risks and disruptions from Russia's war in Ukraine and US policy changes.

The European Union is looking to the private sector to help fund large-scale AI computing infrastructure, known as ‘AI Gigafactories,’ to support the development of advanced AI models. Speaking at the AI Action Summit in Paris, EU President Ursula von der Leyen emphasised the need for powerful computing resources to enable European startups to compete globally.

To accelerate AI adoption, the EU has pledged €50 billion in funding, adding to a €150 billion commitment from private sector companies under the EU AI Champions initiative. The goal is to mobilise €200 billion in total investment, making it the largest public-private partnership for AI development in the world.

With the US and China heavily investing in AI infrastructure, Europe is under pressure to keep pace. Von der Leyen argued that Europe’s collaborative approach to AI, focused on shared computing resources and federated data, could provide a competitive advantage. She stressed that AI Gigafactories would be accessible to researchers, startups, and industries, ensuring that Europe remains a key player in the AI race.

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