As Europe gears up to flex its muscles in the AI arena, it’s hard not to notice the ambitious plans unfolding. The European Union is ready to roll out the red carpet for AI Gigafactories, aiming to throw down the gauntlet to global tech giants. On December 4, 2023, the EU Commission and the EIB Group put pen to paper on a Memorandum of Understanding to finance these colossal projects. This isn’t just some small-scale endeavor; it’s the InvestAI program, which promises a whopping €20 billion to kickstart up to five AI Gigafactories. Ursula von der Leyen announced this bold move at the AI Action Summit in Paris, making it clear: the EU wants to be the heavyweight champion in AI, boasting its technological sovereignty.
Each of these Gigafactories is set to operate with around 100,000 advanced AI chips—four times the capacity of current AI factories. That’s not just ambitious; it’s downright audacious. These facilities are designed for training complex, massive AI models. They will serve as high-capacity computing hubs for next-gen AI development. As part of this plan, the EU aims to triple its EuroHPC AI computing capacity by rolling out nine new supercomputers. This initiative will also support the EU’s goal of ensuring its technological sovereignty] by reducing reliance on non-European infrastructure. Who needs an underdog story when you can have a tech giant in the making?
The funding mechanism is also intriguing. The EIB will provide advisory services and potential co-financing loans, encouraging private investments. It sounds like a classic public-private partnership scheme under the InvestAI Facility. The whole operation ties into the EuroHPC Joint Undertaking, which currently covers 19 existing AI factory projects. The commitment to secure a €20 billion investment landscape is a notable step forward.
The timeline is just as riveting. By early 2026, a formal call for proposals is expected. Yet, in June 2025, 76 preliminary applications from 16 member states had already rolled in. Six new AI factories were announced in October 2025, joining the 13 already selected. The goal? To finalize the selection of five Gigafactories by the end of 2025 or early 2026. Talk about hitting the ground running!
This initiative isn’t just about building factories. It’s about reducing reliance on non-European infrastructure, boosting competitiveness in various fields, and nurturing a pan-EU AI ecosystem. Poland is leading the charge with a consortium involving Baltic nations.
