EU mobilizes $200 billion in AI race against US and China

The European Union says it will channel €200 billion (about $206 billion) into artificial intelligence investments in a bid to compete with the US and China. At the AI Action Summit in Paris on Tuesday, EU Commission President Ursula von der Leyen announced the bloc would spend €50 billion (about $51 billion) to top up €150 billion (about $154 billion) in funding already pledged by a collective of private investors called the European AI Champions Initiative.

“We want Europe to be one of the leading AI continents, and this means embracing a way of life where AI is everywhere,” said Von der Leyen. “Too often I hear that Europe is late to the race where the United States or China have already gotten ahead. I disagree, because the AI race is far from being over.”

These investments aim to help the EU catch up to the lead China and the US have gained in the development of advanced AI infrastructure, and the release of popular chatbot models like ChatGPT and DeepSeek.

The EU was one of the first global powers to introduce comprehensive regulations around artificial intelligence, ushering the AI Act into force last year. On Tuesday, US Vice President JD Vance criticized the EU’s regulatory environment, describing it as “authoritarian censorship” and saying that “excessive regulation of the AI sector could kill a transformative industry.” The US and UK have notably not signed the Paris AI summit’s declaration that commits countries to ensuring AI is “open, inclusive, transparent, ethical, safe, secure and trustworthy.”

“AI will improve our healthcare, spur our research and innovation and boost our competitiveness. We want AI to be a force for good and for growth,” said Von der Leyen. “We are doing this through our own European approach – based on openness, cooperation, and excellent talent.”