The European Commission plans to raise $20 billion to build four "AI gigafactories" to enhance Europe's position in artificial intelligence, aiming to catch up with the U.S. and China. Despite the ambitions, concerns have been raised by industry experts regarding the feasibility of this endeavor.
The proposed public access data centers face obstacles such as chip procurement, suitable locations, and electricity supply. Bertin Martens from the think tank Bruegel questioned the utility of these facilities, pointing out the potential challenges in utilizing the produced AI models effectively.
The vision is for local companies to harness the gigafactories to develop AI models compliant with stricter EU data protection regulations, fostering innovation and competitiveness. However, without major European cloud service providers or companies with substantial customer bases, the success of such a massive hardware venture remains uncertain.
The gigafactory initiative is part of Europe's response to improve competitiveness and stimulate industrial growth. The plan, introduced by European Commission President Ursula von der Leyen at the AI summit in Paris, forms part of InvestAI, a 200 billion euro strategy to address the technological gap with the U.S.
The gigafactories will be funded through a new 20 billion-euro fund, with contributions from existing EU programs and member states, aided by the European Investment Bank. These facilities are anticipated to feature 100,000 cutting-edge chips each, surpassing the capacity of current supercomputers being developed in the EU.
Despite the significant investment, challenges lie ahead, including chip scarcity and the high electricity demands of gigafactories. The potential impact of U.S. restrictions on AI chip exports to Europe also presents a hurdle in the short term.
Martens emphasized the need for a strategic approach, questioning the longevity of such investments in an AI arms race context. He highlighted competing ideas from China on training AI models with less computing power and the importance of focusing on diverse chip applications.
In parallel to the gigafactory strategy, the Commission plans to upgrade 12 scientific supercomputer centers to support the development of AI technologies and foster industry innovation across Europe. This initiative aligns with efforts to empower European chipmakers and startups, potentially enhancing the continent's technological landscape.