EU Unveils Action Plan for AI Development with AI Factories & Gigafactories

CIOTechOutlook Team | Thursday, 10 April 2025, 11:08 IST

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On April 9, 2025, the European Union’s executive team, known as the European Commission, introduced a new plan called the "AI Continent Action Plan." They shared the news in a press release the next day, explaining how they want to use Europe’s strong industries and talented people to boost AI development. This comes after some tech folks and others have complained that the EU’s tough rules might slow down new ideas in the AI world.

The plan focuses on strengthening Europe’s AI competitiveness against powerhouses like the US and China by enhancing local AI infrastructure. It highlights a key challenge, the EU’s dependence on foreign data centers, with limited domestic capacity, often accessed through cloud services controlled outside the region. To fix this, the EU is planning to create "AI factories" and "AI Giga factories"—big places packed with powerful graphics cards (GPUs) are the key for making and training top-notch AI systems.

Additionally, the European Commission will launch the AI Act Service Desk to guide companies through the EU’s big AI law, the AI Act. “The upcoming AI Act Service Desk will be a central point of contact for businesses seeking information and guidance,” the Commission said. This law sets rules for AI based on how risky it could be for people, and it includes stuff like the general-purpose AI models built by companies like OpenAI, Google, and a French startup called Mistral.

Last year, the EU suggested a Code of Practice for these AI developers, asking them to share details about how they train and test their models. But not everyone’s on the same page. OpenAI’s Chief Global Affairs Officer, Chris Lehane noted in an interview, “There’s almost this fork in the road, maybe even a tension right now between Europe at the EU level and then some of the countries. They’re looking to maybe go in a little bit of a different direction that actually wants to embrace innovation.” The plan reflects the EU’s balancing act between regulation and fostering AI advancement.


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