EU Unveils Ambitious AI Action Plan to Rival U.S. and China with €220 Billion Investment

April 11, 2025
EU Unveils Ambitious AI Action Plan to Rival U.S. and China with €220 Billion Investment
  • Currently, only 13.5% of EU businesses have adopted AI technology, prompting the upcoming Apply AI Strategy to encourage AI use in priority sectors through networks such as European Digital Innovation Hubs.

  • On April 9, 2025, the European Commission launched the AI Continent Action Plan, aimed at enhancing the EU's artificial intelligence industry to compete globally with the U.S. and China.

  • The plan includes the establishment of 13 AI factories across Europe, which will support startups, industries, and researchers by providing supercomputing capabilities.

  • Additionally, the Commission plans to develop AI Gigafactories, designed to house approximately 100,000 advanced AI chips, significantly increasing the capacity for training complex AI models.

  • To meet workforce demands, the initiative includes attracting international AI talent and supporting European researchers through programs like the Talent Pool and AI Skills Academy.

  • The EU boasts a significant pool of AI talent, with 30% more researchers than the U.S., and aims to launch new training programs to further enhance this workforce.

  • Data access is a key focus of the plan, with the creation of Data Labs within AI Factories to curate high-quality datasets that will support the forthcoming Data Union Strategy.

  • Henna Virkkunen, the Commission's executive vice-president, emphasized the need for a regulatory framework that minimizes burdens while promoting innovation in AI.

  • To bolster tech development, the EU announced a €1.3 billion investment in the Digital Europe Programme for 2025-2027, aimed at enhancing the continent's technological independence.

  • However, the EU's digital regulatory framework has faced criticism from technology firms for being overly strict, which they argue may stifle innovation and industrial growth.

  • Public consultations regarding the AI Continent Action Plan and related strategies will be held until June 4, 2025, focusing on cloud capacities, data strategies, and overall AI adoption.

  • Moreover, the EU has committed to investing €200 billion through the InvestAI initiative, which includes a €20 billion fund for developing AI Gigafactories.

Summary based on 3 sources


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