EU Unveils AI Plan to Compete with U.S. and China

The European Commission has launched the AI Continent Action Plan, an initiative to turn Europe into a global leader in artificial intelligence . 

The plan lays out a roadmap for scaling AI innovation across the bloc, aiming to close the gap with the U.S. and China. The AI action plan outlines five strategic pillars—from infrastructure to regulation—that will shape Europe’s AI future.

AI Factories and Gigafactories

According to the official statement , the creation of AI Factories and Gigafactories—high-tech centers designed to accelerate AI development—is central to the AI strategy. 

These facilities will house up to 100,000 advanced AI chips, providing startups, researchers, and companies with the computing power and datasets needed to build next-generation AI models.

The European Commission is already deploying 13 AI Factories near Europe’s supercomputing hubs, with plans to back five Gigafactories through €20 billion in private investment via the newly established InvestAI fund.

Increasing Access to Large and High-quality Data

To meet the growing demand for high-quality data essential for AI training, the EU will launch the Data Union Strategy in 2025. 

This initiative includes setting up Data Labs to collect and process diverse datasets. In tandem, the Cloud and AI Development Act will aim to triple the EU’s data center capacity over the next five to seven years, strongly emphasizing sustainability.

With only 13.5% of EU companies currently using AI, the Apply AI Strategy will aim to drive adoption across key sectors. AI Factories and European Digital Innovation Hubs (EDIHs) will help facilitate this rollout.

Strengthening AI Skills and Talents

The Commission is also addressing Europe’s AI talent gap by launching the AI Skills Academy, expanding research fellowships, and opening legal migration pathways for AI experts from outside the EU. 

Additionally, the AI Act, which came into effect in August 2024, will be supported by an AI Act Service Desk to provide businesses with compliance guidance.

Why This Matters

The EU’s AI strategy represents a significant effort to enhance the bloc’s competitiveness in the global AI race. The initiative aims to build a more integrated and capable AI ecosystem across Europe by investing in infrastructure, data, talent, and regulation.

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