The InvestAI initiative includes a dedicated €20 billion European fund to develop AI gigafactories
The European Commission has introduced InvestAI, an ambitious initiative aimed at mobilizing €200 billion ($207 billion) for AI investments across Europe.
The announcement was made by European Commission President Ursula von der Leyen at the AI Action Summit in Paris this week.
The initiative includes a dedicated €20 billion European fund to develop AI gigafactories, which will support open and collaborative development of advanced AI models.
Von der Leyen emphasized AI’s potential to enhance healthcare, research and competitiveness, stating: “AI will improve our healthcare, spur our research and innovation and boost our competitiveness. We want AI to be a force for good and for growth. We are doing this through our own European approach — based on openness, cooperation and excellent talent. But our approach still needs to be supercharged. This is why, together with our Member States and with our partners, we will mobilize unprecedented capital through InvestAI for European AI gigafactories. This unique public-private partnership, akin to a CERN for AI, will enable all our scientists and companies — not just the biggest — to develop the most advanced very large models needed to make Europe an AI continent.”
The InvestAI initiative will support the establishment of four AI gigafactories across the EU, designed to train complex AI models that require significant computing power. Each facility will house approximately 100,000 next-generation AI chips—four times the capacity of current AI factories. These gigafactories will operate as the world’s largest public-private partnership for AI development, ensuring that businesses of all sizes can access the computational power necessary for innovation, the Commission stated.
The European Investment Bank will collaborate with the Commission on financing efforts. The fund will be structured with multiple investment layers, using EU budget contributions to mitigate risks for private investors. Initial funding will come from existing EU programs like Digital Europe Program, Horizon Europe, and InvestEU, while member states can also contribute through their national funding allocations.
This initiative builds on prior EU investments in AI, including the seven AI factories announced in December, with an additional five set to be revealed soon. The Commission’s previous €10 billion investment in AI factories, co-financed by EU Member States, is already the largest public AI investment globally, leveraging significant private sector funding.
Beyond InvestAI, the European Commission is implementing complementary measures to strengthen AI innovation in Europe. These include targeted funding through Horizon Europe and Digital Europe, initiatives to expand AI talent through education and training as well as increased investment in AI start-ups. The EU is also accelerating the creation of Common European Data Spaces and launching the GenAI4EU initiative to drive AI applications across various industries, from health and biotech to manufacturing and mobility. Additionally, the Commission plans to establish a European AI Research Council and introduce the Apply AI initiative later this year to drive AI adoption in key sectors.
At the same time, though, the EU recently updated its Artificial Intelligence Act (AI Act), which was first unveiled in 2023 and set a common regulatory and legal framework for the development and application of AI. It was proposed by the European Commission (EC) in April 2021 and passed in the European Parliament in May 2024. Earlier this month, the EC established new guidelines that prohibits the use of AI practices whose risk assessment is deemed “unacceptable,” while “high.”
