Europe offers subsidies to local AI players amid global boom

The EU is rolling out a sweeping package of subsidies, infrastructure investments, and public funding programs designed to give homegrown AI companies a fighting chance against their better-funded American and Chinese rivals. The centerpiece is the InvestAI initiative, launched in February 2025 with the ambitious goal of mobilizing €200 billion for AI development. That figure combines roughly €50 billion from public sources with the rest expected to come from private investment. The gigafactory gambit In late July 2026, Brussels opened a tender for the construction of up to seven “AI Gigafactories,” large-scale computing facilities designed to handle next-generation AI model training. The gigafactories are backed by approximately €10 billion in public funds, with the expectation that they’ll attract an additional €20 to €30 billion in total investment. Decisions on which proposals get the green light are expected in early 2027. Individual member states are also piling on. France announced a €109 billion commitment to data-center infrastructure in 2025. Spain, meanwhile, allocated €150 million specifically for AI integration subsidies in early 2025. Private money follows public sign...