The European Commission has been promoting the concept of ‘AI factories’ (Artificial Intelligence) for some time now. The term sounds like a political buzzword, clearly designed to align with the new wave of AI. But what does it mean? What do these factories intend to do?
At first, the term raised more questions than answers. Are AI factories physical locations or digital ecosystems? Who governs them, and what criteria must be met to be part of one? Is there a formal application process? These are critical points for any party interested in leveraging this emerging infrastructure, whether researchers, companies, or governments.
According to the European Commission, an AI factory refers to a facility or entity that offers a supercomputing infrastructure specifically adapted for AI development. This includes optimised supercomputers, advanced data centres, dedicated access channels and AI-focused services. But beyond the technical setup, AI factories are conceived as collaborative environments - places where talent and expertise are brought together to take full advantage of Europe's high-performance computing capabilities.
So yes, AI factories are new, but they have physical infrastructure, and their purpose goes beyond hardware. They are designed to operate on a national scale, combining computing power, secure data environments and development platforms to support Europe's AI ambitions. They are intended to accelerate digital transformation in various sectors, including healthcare, manufacturing, transport and agriculture.
The European Joint Undertaking for High Performance Computing (EuroHPC) plays a key role in realising this vision. The partnership between the European Commission, industry and research organisations helps to fund the infrastructure, acquisition and operation of AI-optimised supercomputers by up to 50%. But how will this funding be allocated going forward? Will it be enough to attract long-term interest?
In practical terms, the AI factories are expected to form dynamic ecosystems around Europe's current and future supercomputers. This initiative aims to provide startups with the necessary infrastructure to train AI models and compete with (e.g.) the US, such as OpenAI. Is the EU being too ambitious?
To date, the participation of member states has been significant. The 13 AI factories already selected will be deployed across Europe, in Austria, Bulgaria, Finland, France, Germany, Greece, Italy, Luxembourg, Poland and Slovenia. Spain, Sweden.
In April, President Ursula von der Leyen announced new, significantly larger ‘gigafactories’ aimed at delivering breakthroughs in healthcare, biotechnology, industry, robotics and scientific discovery. While the best-performing AI factories today use supercomputers with up to 25,000 advanced AI processors, a gigafactory would exceed 100,000.
As these initiatives take shape, a fundamental question remains: can the EU's AI factories become lasting engines of innovation in the face of fierce competition from major players outside the EU?
Only time and the meaningful involvement of stakeholders will tell.
Opinion Article:
Talita Soares, EU Strategy & Policy Advisor
