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"AMSTERDAM, Jan 9 (Reuters) - The Dutch government said on Thursday it is in discussions with U.S. chip firms Nvidia and AMD about suppling hardware and technological knowledge for a possible artificial intelligence (AI) facility.

The Netherlands aims to build a facility where an AI supercomputer can contribute to research and development, as part of broader EU projects to strengthen Europe's digital economy, it said in a statement.

Last year the Dutch government 204.5 million euros ($210 million) for investments in AI, while it also aims to use European subsidies.

Economy minister Dirk Beljaarts said the chances of realizing the project had increased as a result of the discussions, without giving specific details.

"Competition is fierce, the whole world is after this technology," the minister said after a meeting with Nvidia in Silicon Valley.

"This deal brings building a Dutch AI facility a lot closer."

(This story has been corrected to clarify that the Netherlands has held talks with Nvidia, not reached a deal, in paragraphs 1 and 4)."