The European Commission launched a call for tenders to publicly finance up to seven AI gigafactories in Europe, aiming to reduce dependence on foreign suppliers.
AI gigafactories are large-scale computing facilities equipped with specialized chips for training next-generation AI technologies, including large language models. The initiative is part of the EU's tech sovereignty push to reduce reliance on foreign cloud services and chip providers.
European Commission President Ursula von der Leyen announced the plan to build AI gigafactories at the AI Action Summit in Paris in February 2025. The ambition is to replicate the success of the CERN laboratory in Geneva.
The Commission expanded the initial scope from four or five gigafactories to up to seven. However, the initiative has drawn criticism for repeatedly being delayed.
The procurement process is split into two consecutive phases over the next six and a half years. The public funding share is roughly one-third of overall investment: the EU contributes about €5 billion, matched by €5 billion from EU countries, with around €20 billion from private investment, totaling over €30 billion.
Under the current budget, Brussels can only commit €1 billion, with the rest expected from the next Multiannual Financial Framework (MFF). A senior Commission official said: "We cannot pre-empt the decisions about the next MFF."
In exchange for public contribution, the EU and supporting member states will receive a proportionate share of compute access for public projects, research centres and AI labs. All operating costs will fall on private actors; projects must be financially sustainable.
Ten countries have expressed interest in hosting a gigafactory: Germany, Italy, France, Poland, Czechia, Denmark, Finland, Greece, Portugal and Spain. Paris has signalled it intends to host a gigafactory alone.
The EU remains heavily reliant on foreign suppliers for specialised AI chips; it has signed memoranda of understanding with Nvidia, AMD and Qualcomm. Criteria to assess tenders include measures to avoid potential lock-in effects from suppliers.
Successful projects are expected to begin physical construction at the start of 2027 and become operational by mid-2028.
Updates
The European Commission has signed letters of intent with US chipmakers AMD, Nvidia, and Qualcomm to facilitate access to advanced hardware for the new computing facilities. Additionally, the estimated total potential investment for these AI gigafactories has been refined to over €30 billion, approximately $34 billion.
The European Commission has officially signed letters of intent with AMD, Nvidia, and Qualcomm to secure access to essential advanced hardware for the new computing facilities. Additionally, the projected total investment for the AI gigafactories has been refined to exceed €30 billion, or approximately $34 billion.
The European Commission has formally signed letters of intent with US chipmakers AMD, Nvidia, and Qualcomm to ensure access to advanced hardware for the planned AI gigafactories. Additionally, the estimated total potential investment for the initiative has been refined to over €30 billion, or approximately $34 billion.
The European Commission has officially signed letters of intent with US-based chipmakers AMD, Nvidia, and Qualcomm to secure access to the advanced hardware necessary for the AI gigafactories. Furthermore, project requirements have been clarified, confirming that consortia formed by cloud providers, public entities, and investors are eligible to apply for funding. While the total potential investment remains at over €30 billion, the initiative now aims to mobilize at least €20 billion specifically from private sector sources.
The European Commission has officially signed letters of intent with AMD, Nvidia, and Qualcomm to secure access to advanced hardware for the planned AI gigafactories. These facilities are expected to mobilize at least €20 billion in private investment as part of the total project, which is now estimated to reach more than €30 billion.
The European Commission has officially signed letters of intent with AMD, Nvidia, and Qualcomm to secure access to essential advanced hardware for the new AI infrastructure. These facilities are expected to mobilize at least €20 billion in private funding, contributing to a total investment potential now estimated at over €30 billion. Additionally, the Commission confirmed that all resulting projects must comply with existing EU standards on data protection, safety, and ethics as defined by the Digital Services Act and Digital Market Act.
The European Commission has signed letters of intent with US chipmakers AMD, Nvidia, and Qualcomm to facilitate access to advanced hardware. The initiative is expected to mobilize at least €20 billion in private investment, with eligible applicants including consortia and special purpose vehicles composed of technology providers, public entities, and investors. Additionally, the Commission pledged that these gigafactories will comply with EU standards on data protection, safety, security, and ethics under the Digital Services Act and Digital Markets Act.
