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EU seeks to catch up to US and China with €20bn plan for AI gigafactories

The Guardian

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April 10, 2025

The EU yesterday revealed details of a €20bn (£17bn) plan to create sites equipped with vast supercomputers to develop the next generation of artificial intelligence models, while opening the door to amending its law that regulates the technology.

- Jennifer Rankin

EU seeks to catch up to US and China with €20bn plan for AI gigafactories

Publishing a strategy to turn Europe into an "AI continent", the European Commission vice-president Henna Virkkunen said the technology was at the heart of making Europe more competitive, secure and technologically sovereign.

The EU is seeking to catch up with the US and China, which have taken a global lead in pioneering the technology that increasingly powers shopping websites and self-driving cars, generates text and is predicted to play a transformative role in future healthcare, security and defence and advanced manufacturing.

The US has a commanding lead in AI, far ahead of China. A report from Stanford University this week said that in 2024 40 "notable AI models" - meaning influential - were produced by institutions in the US compared with 15 in China and three in Europe (all in France).

In a separate 2024 report, Stanford found that no EU country made the top five for "vibrancy" in AI, a metric that considers private investment, patents and research. It ranked the UK in third place, behind the US and China, with France in sixth place and Germany eighth.

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