The European Commission has approved funding for seven new AI factories, marking a significant step in advancing artificial intelligence (AI) across Europe. Backed by a €1.5 billion fund, these cutting-edge facilities will deploy or upgrade AI-enhanced supercomputers and general-purpose AI (GPAI) models.
The initiative aims to broaden AI adoption among small businesses while bolstering academic research within the EU. These factories will allow organisations to develop, test, and refine algorithms, advancing AI usage throughout the bloc. Commission President Ursula von der Leyen described this as a move towards making Europe an “AI continent” by the decade’s end.
What Are AI Factories?
AI factories are advanced facilities designed to generate intelligence and revenue in today’s industrial revolution. NVIDIA founder Jensen Huang described them as essential for running generative AI systems like chatbots.
A robust AI factory comprises four components: data pipelines to prepare data, algorithms, supercomputing infrastructure for AI training, and experimental platforms for testing. These factories support innovations such as industrial robots, self-driving cars, and systems like ChatGPT. Globally, they also power Google’s advertising auctions, Amazon’s pricing, and Uber’s ride availability.
Locations and Focus Areas
The EU’s new AI factories will be located in Barcelona, Bissen, Bologna, Stuttgart, Mimer, Kajaani, and Athens. Each site will specialise in areas like agrifood, cybersecurity, finance, and space.
With operations starting in 2025, some sites will also provide AI upskilling classes, reinforcing Europe’s technological leadership. These factories promise to reshape industries and position Europe at the forefront of AI innovation.
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