Europe at "acute risk of marginalisation" unless billions in AI funding committed, warns new report

A new report warns Europe is at risk of becoming marginalized in the AI race unless it commits €100 billion to data centers and AI infrastructure. The Transformative AI Strategy for Europe, authored by senior policymakers, economists, and AI experts, urges Europe to triple its computing power from the current 5% to 15% by 2030. Achieving this would require attracting €1.5 trillion from private investors and securing access to frontier AI models.

The report's authors, including Nobel laureate Philippe Aghion and former EU Commissioner Margrethe Vestager, warn that Europe could become overly reliant on foreign governments and technology if it fails to act. They stress the urgency of the situation, noting that the US and China are aggressively investing in AI and talent. Margrethe Vestager emphasized that Europe cannot become a "playground for foreign powers," as citizens are already facing economic and social consequences of decisions made elsewhere.

The report's recommendations include making it easier to build data centers across the EU, launching an AI supply chain security alliance, and integrating AI threats into crisis preparedness plans. The report emphasizes that governments should not delay in implementing these recommendations to ensure Europe can thrive in the AI era.