EU's desperate £17bn mega-plan to catch up with US and China (2025)

The EU has unveiled £17bn AI plans in a bid to catch up with China and the US (Image: Getty)

The European Union has unveiled £17billion plans for sites to build a new generation of artificial intelligence (AI) models in a bid to catch up with the US and China. Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy, said AI is at the heart of efforts to make Europe "more competitive, secure and technological sovereign".

She added: "The global race for AI is far from over. Time to act is now." The bloc's strategy aims to turn Europe into an "AI continent" to rival global leaders US and China, which are pioneers of the tech. Brussels' plan includes beefing up Europe's AI and supercomputing infrastructure with large scale AI gigafactories, the creation of data labs on top of boosting AI's industrial use.

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AI is being used increasingly on retail websites, self-driving cars and to generate text, with predictions it could transform healthcare, security, defence and manufacturing.

Under the EU's plan, the continent's new AI gigafactories would have 100,000 AI processors, four times as many as its current, best performing AI factories, according to the bloc's strategy.

EU officials envisage three to five AI gigafactories in the EU at a cost of around £2.6bn to £4.3bn (€3-5bn) each, with £513million (€600m) for the biggest AI factory.

The European Commission wants to raise £17bn (€20bn) for the scheme, with public money used to attract private investors through a facility backed by the European Investment Bank.

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Henna Virkkunen says the global AI race isn't over (Image: Getty)

The EU also wants to develop European-made AI semiconductors. These are advanced chips which are crucial for AI factories.

Europe's AI Act will also be subject to a consultation over its possible "simplification" in a drive to cut red tape.

The Act aims to limit the risks posed by AI and was only approved by the bloc's parliamentarians last year.

Ms Virkkunen said: "We are working towards a future where tech innovation drives industry and public services forward, bringing concrete benefits to our citizens and businesses through trustworthy AI.

"This means a stronger economy, breakthroughs in healthcare, new jobs, increased productivity, better transport and education, stronger protection against cyber threats, and support in tackling climate change."