EU Invests €10 Billion in AI Gigafactories to Bridge Tech Gap

• The EU is investing €10 billion ($11.4 billion) in funding for seven AI gigafactories to close the gap with the US and China.
• Each gigafactory will have at least 100,000 cutting-edge AI chips, more than quadrupling the EU's current computing power.
• The EU aims to attract an additional €20 billion in private investment to solidify its position in the global AI landscape.

Access to the raw scale of computing power within AI gigafactories is a strategic necessity for Europe as AI development accelerates, said Henna Virkkunen, the Commission Executive Vice-President for Tech Sovereignty, Security and Democracy.

The European Union has announced a significant investment of €10 billion ($11.4 billion) in funding for seven AI gigafactories, aiming to bridge the gap with the US and China in the field of artificial intelligence. This move is part of the EU's efforts to establish 'tech sovereignty' and reduce dependence on foreign providers. The Commission Executive Vice-President for Tech Sovereignty, Security and Democracy, Henna Virkkunen, emphasized that access to computing power within AI gigafactories is a strategic necessity for Europe as AI development accelerates. With this funding, the EU hopes to attract an additional €20 billion in private investment, further solidifying its position in the global AI landscape.

The EU's current computing power is delivered by a network of 19 AI data centers across the continent. However, these data centers are significantly less powerful than those planned for the seven gigafactories, with each gigafactory expected to have at least 100,000 cutting-edge AI chips. This will more than double the EU's current computing power when the gigafactories come online. The Commission report presented to European Parliament in June highlighted Europe's lagging position in crucial sectors for AI development, including private investment and manufacturing of components needed for data centers.

The EU's efforts to establish its own AI ecosystem may have significant implications for European businesses and public authorities relying on US AI providers. The Commission report warned that dependence on hyperscale cloud and AI computing service providers exposes data to third-country access and carries risks to service continuity, endangering operational autonomy. This development may prompt a shift towards developing homegrown AI companies, as French President Emmanuel Macron has previously raised the alarm about Europe's lack of indigenous AI capabilities.

This development may impact European businesses and public authorities relying on US AI providers, as the EU aims to reduce dependence on hyperscale cloud and AI computing service providers. Lawyers should watch for potential changes in data protection, safety, security, and ethics standards for AI products developed with the growing network of data centers.

Source: Original reporting via AP