On April 9, the European Union announced plans to build a network of AI “gigafactories,” which aim to boost its technological firepower and reduce dependence on foreign innovation.
The initiative is part of the EU’s newly introduced AI Continent Action Plan, which aims to strengthen the computing infrastructure. It will improve access to data and ease regulatory compliance.
EU Introduces €200B InvestAI Initiative
The European Commission, the bloc’s executive arm, envisions gigafactories equipped with up to 100,000 cutting-edge AI chips. It is four times the capacity of existing facilities.
These centers will help European firms train increasingly complex AI models, an area where Europe has fallen behind since the release of ChatGPT by U.S.-based OpenAI in 2022 triggered a global AI investment frenzy.
Henn Virkkunen, the EU’s executive vice-president for tech sovereignty, highlighted the moment’s urgency. “The global race for AI is far from over,” she said. “This action plan outlines key areas where efforts need to intensify to make Europe a leading AI continent.”
The EU has already pledged €200 billion ($219 billion) in AI-related funding, including a fresh €20 billion earmarked specifically for gigafactory development. To support these ambitions, member states will form public-private partnerships and launch a €150 billion investment drive over the next five years.
The initiative arrives amid soaring investment elsewhere. The U.S. recently announced “Stargate,” a $500 billion AI infrastructure project backed by tech giants like Microsoft, NVIDIA, and Oracle.
China is also making waves with homegrown startups such as DeepSeek. These startups reduce the performance gap despite hardware limitations. The EU will also introduce a Cloud and AI Development Act, which will function as an AI Act Service Desk to improve regulatory processes.
