How will Europe compete in the global artificial intelligence race? The answer arrived in February 2025 with the launch of InvestAI, a €20 billion European fund designed to establish up to five AI gigafactories across the continent. This ambitious initiative aims to mobilize a total of €200 billion in investments for AI infrastructure, positioning Europe as a formidable competitor against AI powerhouses like the United States and China.
Europe’s bold €20 billion InvestAI fund marks its definitive entry into the global AI competition against American and Chinese dominance.
The European Investment Bank (EIB) and European Commission formalized their partnership through a Memorandum of Understanding signed in December 2025. This collaboration pools resources under the EIB’s €70 billion TechEU Programme for 2025-2027, exploring loans alongside EU grants to attract private investment. Together with financing partners, they’ll mobilize €250 billion total for innovation.
Each AI gigafactory represents a significant technological leap, housing approximately 100,000 advanced AI chips—four times more than current-generation facilities. These massive computing hubs will train complex AI models specifically for medicine, clean technology, and space exploration. The gigafactories supplement 19 existing AI factories already funded by the EU through EuroHPC JU with €10 billion in support.
Europe’s strategic goals extend beyond raw computing power. The initiative guarantees accessibility for startups, SMEs, and researchers—not just large corporations. The EIB Group will provide advisory support through the InvestEU Advisory Hub to improve the bankability of investment proposals. By tripling EuroHPC AI computing capacity and reinforcing technological sovereignty, Europe aims to develop trustworthy AI aligned with EU values and compliant with the AI Act.
Funding comes from multiple sources:
- €1 billion annually from Horizon Europe and Digital Europe
- Targeted €20 billion yearly investment over the digital decade
- Combination of grants, equity, and loans
The timeline shows rapid development:
- InvestAI launched February 11, 2025
- AI Continent Action Plan published April 2025
- Fifteen-plus AI factories operational through 2025-2026
Through this coordinated approach, Europe is building a collaborative AI ecosystem that balances innovation with European values, challenging global competitors while guaranteeing broad access to transformative technology. The initiative represents the largest public-private partnership for trustworthy AI development on a global scale. Much like how EDI systems integrate with existing platforms, these AI gigafactories will seamlessly connect with ERP systems to maximize operational efficiency and data processing capabilities.
