EU’s 20-billion-dollar AI gigafactory plan faces setback as US limits chip access

The European Commission’s plan to build four “AI gigafactories” is facing significant challenges, with restricted access to advanced AI chips threatening its success.

The 20-billion-dollar initiative, announced by European Commission President Ursula von der Leyen, aims to boost Europe’s AI capabilities and reduce dependence on the U.S. and China.

However, industry experts warn that securing Nvidia’s cutting-edge-chips, each costing 40,000 dollars, will be difficult, especially as the U.S. governments tightens export restrictions.

The gigafactories, part of the broader 216-billion-dollar InvestAI strategy, are intended to provide European researchers and companies with high-performance AI computing infrastructure.

However, with limited electricity availability and lack of major European AI firms comparable to OpenAI or Google, experts question whether the investment is sustainable.

Additionally, concerns arise over the short lifespan of AI infrastructure, as rapid technological advancements could render the facilities outdated within a few years.

The uncertainty surrounding U.S. chip policies, especially under a potential Trump administration, further complicates Europe’s efforts to establish itself as a global AI leader.