Increase AI investment! The European Union adds €50 billion in investment, planning to leverage €200 billion for the AI competition

The global artificial intelligence competition is becoming increasingly intense, and the European Union has also begun to ramp up AI investment in hopes of securing a favorable position in this future-oriented contest.

On February 11, European Commission President Ursula von der Leyen announced the launch of the "InvestAI Program" at the AI Action Summit held in Paris: The EU will mobilize €200 billion (approximately $206 billion) for AI investment over the next few years. In her speech, von der Leyen emphasized:

"The EU's goal is to ensure that every company, not just large enterprises, has access to the computing power they need."

"The largest public investment in AI in the world will unleash more than ten times the private investment."

According to the plan, €20 billion will be specifically allocated for the construction of AI super factories, providing robust computing power support for training the world's largest and most complex AI models. This €20 billion InvestAI fund will partly come from existing EU funding programs, such as the Digital Europe Program, the Horizon Europe Program, and InvestEU, aiming to leverage up to €200 billion in investment.

The "InvestAI Program" is jointly supported by the EU and private investors. Von der Leyen stated that the EU will provide €50 billion (approximately $51 billion) in funding, while an additional €150 billion (approximately $154 billion) will be collectively committed by suppliers, investors, and private investors from the industry.

The Rise of European AI?

Von der Leyen stated, "We want Europe to become one of the leading continents in artificial intelligence, which means embracing a lifestyle where AI is ubiquitous." She refuted claims that Europe is lagging behind the U.S. in the AI race, emphasizing that "the AI competition is far from over." Analysts believe that the EU's move is a response to the U.S. government's earlier announcement of the $500 billion "Gateway to the Stars" plan.

Previously, European AI was considered unable to compete with the U.S., but the AI assistant application Le Chat developed by French startup Mistral AI has just topped the charts of free apps in France, becoming a new highlight of European AI. This has led European developers to cheer: Europe finally has a place in the AI field.

Le Chat, developed by Mistral AI, operates at lightning speed, generating 1,000 tokens per second, which is 13 times faster than ChatGPT. It supports real-time internet access and generates high-quality images, outperforming DALL·E 3. Mistral AI has been established for just over a year and has reached a valuation of $6.2 billion, becoming a leader in the European AI sector.

Before the AI summit on Tuesday, French President Macron also announced on Monday that France will invest €109 billion (approximately $112 billion) to build a European version of the "Gateway to the Stars" to promote AI development in France over the next few years. Currently, 35 ready-to-use locations have been identified in France, fully promoting the construction of AI infrastructure Macron emphasized that France and Europe must occupy a central position in the AI revolution.

Not long ago, the emergence of China's low-cost AI model DeepSeek shocked the entire industry, as it demonstrated that artificial intelligence systems could be built without significant investment.

Henna Virkkunen, the European Commission's Commissioner for Technological Sovereignty, stated that the EU aims to support a strong AI startup community, as these companies often lack access to computing power:

"Within a year, our computing power in supercomputers will be five times what it is now, but of course, more investment is still needed."

Von der Leyen stated that Europe needs to focus on a unique approach to AI development, including an emphasis on technology, the adoption of AI in complex applications, leveraging rich industrial manufacturing data, and gathering talent from different countries and industries.

It is noteworthy that Von der Leyen's statement is based on the commitment made last December to invest €2 billion in building seven AI-optimized supercomputers, which will be open to startups for training AI models. The European Commission announced today that it will "soon" announce the addition of five more supercomputers.

Risk Warning and Disclaimer

The market has risks, and investment should be cautious. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investment based on this is at their own risk