The EU Bets 30 Billion on Its First AI Gigafactories

The EU Embarks on Building AI Gigafactories

The European Union has recently unveiled an ambitious project aimed at establishing AI gigafactories on the continent. This unprecedented call for proposals aims to kick off the construction of these infrastructures by the first quarter of 2027, with commissioning expected the following year. These facilities are designed to provide colossal computing power, essential for propelling Europe to the forefront of artificial intelligence.

The announcement marks the beginning of a new era for Europe, which seeks to close its gap in the field of AI. The European Union has launched a massive call for proposals, hoping to mobilize 30 billion euros to build its first AI gigafactories. These facilities will provide massive computing capacity, crucial for supporting the growth of AI on the continent.

Henna Virkkunen, Vice President of the Commission in charge of Digital Affairs, emphasized the importance of this project. She stated that this effort represents a crucial step in the ambition to make Europe a global leader in AI. According to her, access to such processing capacity is a "strategic necessity" for the continent.

Mixed Funding for a Colossal Project

The call for proposals, which has the support of 18 EU member states, including France, Germany, Italy, and Spain, aims to establish seven AI gigafactories. The deadline for this call is set for November. The project is divided into two distinct lots:

• The first lot concerns four projects, each receiving 500 million euros in European funds.
• The second lot aims to develop three additional gigafactories, even more powerful, with funding of one billion euros per project.

Participating countries will provide financial contributions similar to those of the EU. In total, the initiative is expected to mobilize around 10 billion euros in public funds, supplemented by 20 billion euros from the private sector. The winners of this call for proposals will be selected early next year, with construction expected to begin in the first quarter of 2027.

Sovereignty Challenges and Strategic Partnerships

The gigafactories must be located within the EU and meet strict environmental and sovereignty criteria. However, to ensure the supply of processors, Brussels has reached agreements with American giants such as AMD, Nvidia, and Qualcomm. This decision, while necessary, raises questions about Europe's technological autonomy. Nevertheless, the EU hopes to eventually rely on European chips.

These infrastructures will offer computing power equivalent to at least 75,000 high-performance processors for each project in the first lot, and 100,000 for those in the second. This capacity will be made available to companies, researchers, universities, and other European organizations. To initiate the process, the EU and the funding countries commit to acquiring a portion of this capacity.

France Competing to Host a Gigafactory

France has welcomed this initiative, expressing its desire to host an AI gigafactory on its territory. The French government has announced its intention to order computing capacity worth 100 million euros to meet the future needs of its public administrations, including in the fields of research and health. This commitment is separate from the investments the state is making in its own computing infrastructures.

This project is part of the broader EU strategy to position Europe as a leader in AI. Until now, Europe has lagged behind the United States and China. With a plan unveiled last year, the EU aims to mobilize 200 billion euros to achieve this goal. Over the past two years, Europe has already established 19 smaller AI factories. This call for proposals aims to scale up.

The European Union is counting on cities like Paris, Amsterdam, London, and Stockholm to become major tech hubs, thereby strengthening the continent's position on the global AI stage.