During the AI Action Summit in Paris on Tuesday, European Commission President Ursula von der Leyen declared that Europe will invest two hundred billion euros into artificial intelligence initiatives.

Of this amount, twenty billion euros will be earmarked for AI gigafactories, which are meant to equip companies with the necessary computing power to collaboratively develop and train advanced AI models.

Referred to as InvestAI, this initiative aims to foster the establishment of public-private partnerships and will be financed through existing EU programs that include digital elements, such as the Digital Europe Programme, Horizon Europe, and InvestEU.

EU member states are also encouraged to contribute through designated cohesion funds.

According to the Commission, the new funding will enable European firms, including smaller businesses, to gain access to substantial computing power, with an initial proposal for seven AI gigafactories introduced in December, along with plans to disclose an additional five in the near future.

These facilities are projected to accommodate approximately one hundred thousand state-of-the-art AI chips, which is about four times the current capacity of existing AI factories.

This announcement comes on the heels of French President Emmanuel Macron's recent unveiling of a one hundred nine billion euro investment plan for AI projects within France.

In a distinct move last month, newly sworn-in U.S. President Donald Trump revealed a partnership with leading technology firms to invest billions in AI infrastructure in the U.S., initially deploying one hundred billion dollars with potential increases up to five hundred billion dollars over the next four years.

The InvestAI initiative is a component of the EU's wider strategy detailed in its Competitiveness Compass, aimed at enhancing growth through key technologies.

The Commission highlighted that this investment aims to support a European model of AI centered around openness, collaboration, and the cultivation of high-quality talent.