EU Invests 30 Billion Euros in AI and Gigafactories

The European Commission is investing 30 billion euros to develop a network of AI factories and larger gigafactories to bolster the European Union's competitiveness against the United States and China. The bloc has allocated 10 billion euros for 13 AI factories and an initial 20 billion euros for gigafactories, which are designed to be four times more powerful than standard AI facilities.

These centers aim to integrate computing power, data, and research talent into a dynamic ecosystem. While the EU has received 76 expressions of interest across 60 sites, officials noted that the energy-intensive infrastructure will require significant private investment and modernization of power grids. President Ursula von der Leyen confirmed that U.S. AI chips will power these facilities.

The first AI factory is expected to become operational in the coming weeks, with a major project scheduled to launch in Munich, Germany, in early September. This initiative follows earlier efforts such as the AI factory launched by Telenor in Norway last November. The strategy aligns with a broader industrial shift toward AI factories, a concept advocated by Nvidia CEO Jensen Huang.