EU backs AI gigafactories to close computing gap

The European Union is investing €10 billion to support seven AI gigafactories as part of a broader effort to strengthen Europe’s computing capacity. The bloc also hopes the initiative will draw another €20 billion in private funding, giving the region more resources to compete in the global AI race.

The push is tied to Europe’s goal of reducing reliance on US technology giants and advancing tech sovereignty. Major obstacles remain, including high energy costs, limited chip production and weaker private investment, all of which could slow Europe’s attempt to catch up with the US and China.