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The European Union unveiled an ambitious plan to catch up in the global AI race by building five massive computing facilities. Each "AI gigafactory" will house 100,000 AI chips - four times more than current installations.
The initiative comes as part of a broader $219 billion AI investment strategy. The EU aims to transform its industrial strengths and talent pool into engines of AI innovation. Their plan includes specialized labs to help startups access high-quality training data and a new AI Act Service Desk to guide companies through regulations.
This move follows criticism from tech leaders who claim EU rules stifle innovation. At a recent Paris summit, OpenAI and U.S. officials urged Europe to embrace AI opportunities rather than focus on restrictions.
The timing is crucial. The U.S. recently announced Stargate, a $500 billion AI venture backed by tech giants. Meanwhile, Chinese company DeepSeek claims its models match American capabilities despite using less advanced hardware.
To fund these gigafactories, the EU will partner with private investors. Twenty investors have already committed $150 billion for AI projects in Europe. The bloc also plans to triple its data center capacity within seven years.
The initiative marks a shift in EU strategy. While maintaining its regulatory framework, Brussels now emphasizes infrastructure and support for AI development. They're opening applications for gigafactory investments, with the German research center Jülich emerging as an early candidate.
Europe faces steep competition. While the U.S. leads in commercial AI and China excels in implementation, the EU hopes its industrial base and research capabilities will help it carve out a distinct position in the AI landscape.
Under the plan, member states and companies will share costs through public-private partnerships. The EU also promises a Cloud and AI Development Act to boost private investment in infrastructure.
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