At the AI Action Summit in Paris on 11 February 2025, Commission President Ursula von der Leyen launched InvestAI, a public-private initiative that will mobilize €200 billion for AI across the EU, including €20 billion for four large-scale AI gigafactories equipped with 100,00000 next-generation AI chips each. The scheme aims to democratize access to cutting-edge compute, spur industrial and mission-critical AI applications, and cement Europe’s technological sovereignty.
What: Program - Investment announcement
Impact score: 4
For whom: policymakers, AI businesses, SMEs, research institutions, investors
Flemish AI stakeholders can apply to host (pilot) projects.
Access to additional funding channels (Digital Europe, Horizon Europe) for Flemish research and training initiatives.
Highlights the need for Flemish talent and skills programmes to prevent future labour shortages in AI.
With InvestAI, the European Commission positions artificial intelligence as a cornerstone of Europe’s competitiveness and technological sovereignty. By explicitly framing the initiative as a “CERN for AI”, Brussels seeks the same kind of collective momentum that proved effective for particle physics: public funds act as a lever to crowd in private capital and build shared, cross-border infrastructure. A total of € 200 billion is to be mobilised, of which € 20 billion is earmarked for four AI gigafactories containing roughly 100,000 next-generation AI chips each.
The objectives are threefold. First, the EU wants to guarantee broad access to world-class computing so that SMEs, start-ups and research institutions are no longer dependent on non-European hyperscalers. Second, InvestAI aims to accelerate breakthrough AI applications in socially critical areas—from healthcare and climate adaptation to mobility and industrial automation. Third, the initiative seeks to strengthen Europe’s AI talent pool via scholarships, reskilling programmes and a European AI Research Council that will draft strategic research agendas.
Financial and operational set-up
InvestAI is legally structured as a layered investment fund. EU budget lines (Digital Europe, Horizon Europe, InvestEU) provide a first-loss tranche that de-risks commercial investors, while Member States can top up with additional contributions or earmark cohesion funds. The European Investment Bank (EIB) will manage the fund together with a new governing board comprising the Commission and the Member States.
Layer
Amount
Source & Purpose
EU budget “first-loss” tranche
€ 50 bn
Redirected from Digital Europe, Horizon Europe and InvestEU; de-risks private investors and co-finances strategic projects
Private-sector pledges (European AI Champions club)
€ 150 bn
Commitments from Airbus, ASML, Siemens, Infineon, Philips, VW, Mistral & others; channelled via venture vehicles and direct equity stakes
Dedicated AI-gigafactory fund (sub-envelope of EU tranche)
€ 20 bn
Four public-access “AI gigafactories” (≈ 100 k GPUs each) to be managed with the European Investment Bank; money drawn from EU programmes plus matching contributions by Member States
Composition check: € 50 bn EU money + € 150 bn private = € 200 bn total mobilisation target. Of the EU’s € 50 bn, € 20 bn is ring-fenced for the gigafactory vehicle.
The flagship element—the four AI gigafactories—should be operational in 2027-2028. They will offer compute as a service: companies and knowledge institutes can pay-as-they-go for access to a pool of 400 000 advanced AI accelerators. This sharply lowers the cost of large-scale model training while guaranteeing data residency and compliance with the AI Act on EU soil.
Beyond infrastructure, InvestAI allocates substantial funds for GenAI4EU pilots in sectors such as biotechnology, energy and public services. Flemish organisations can apply to combined calls under InvestAI, Digital Europe and Horizon Europe. In parallel, a broad AI skills agenda will launch: master’s and PhD scholarships, dual-learning tracks for technical profiles and large-scale reskilling for workers in sectors transformed by generative AI.
Timeline
Q4 2025: publication of the first call for proposals for the gigafactories.
H1 2026: legal finalisation of the fund structure and start of capital raising.
2027: interim evaluation of the private-investment leverage ratio (target: x10).
End 2027: progress report to the European Parliament; adjustments to governance or financing mix if needed.
According to the Commission, every public euro should generate roughly ten euros in additional private investment. The initiative is therefore intended to unleash a multiplier effect of around € 2 trillion across the European AI ecosystem by 2030. The Commission also foresees a 25 % annual reduction in compute costs for SMEs and a substantial decrease in reliance on non-EU cloud providers.
