CEE to get four AI factories under EU initiative

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Central and Eastern Europe (CEE) is set to play a key role in the EU’s push to establish itself as a global leader in artificial intelligence under the new funding initiative Invest AI.

European Commission (EC) President Ursula von der Leyen announced the plan at the AI Action Summit in Paris, stating that Europe must be at the forefront of AI innovation by fully integrating AI into Europe’s economy and daily life.

The investment will be a collaboration between the EU, its member states and the private sector. According to Von der Leyen, Invest AI will be reminiscent of the European Organization for Nuclear Research CERN, which is funded from European public and private sources.

CEE to host 4 of EU’s 13 planned factories

The EU has committed EUR 200bn to AI development, aiming to close its technological gap with the US and China by accelerating AI infrastructure, supporting next-generation chip-powered facilities, and attracting private investment into Europe’s AI ecosystem. The EU aims to reduce its reliance on foreign AI infrastructure by developing its own models and training facilities.

A key component of the plan is a EUR 20bn fund for AI gigafactories, large-scale facilities designed to train complex AI models using advanced semiconductor technology. The CEE AI factories will be established in Vienna, west Austria; Sofia, west Bulgaria; Poznan, west Poland; and Maribor, east Slovenia.

Germany and France will also host factories, the EC announced, having selected 7 AI factory locations in the first Invest AI round in December, bringing the total to 13.

CEE AI factories to capitalise on existing local skillsets, infrastructure

The AI factories in CEE will be strategically located to leverage existing technological expertise and industrial strengths. Vienna, Austria, will focus on industrial AI applications, supporting the country’s advanced manufacturing and automation sectors.

Sofia, Bulgaria, will specialise in AI-driven cybersecurity and data analytics, aligning with Bulgaria’s growing role in digital security. Poznan, Poland, will concentrate on AI in healthcare and life sciences, capitalising on Poland’s expanding biotech and medical research ecosystem.

Maribor, Slovenia, will develop sustainable AI and green technologies, reflecting Slovenia’s commitment to environmental innovation. These locations were chosen to ensure that AI development in CEE aligns with national priorities and contributes to the region’s broader economic and technological advancement.

Europe’s AI push to compete with US

The EU’s announcement comes amid a surge of AI investment from global rivals. Despite its unprecedented scale of, the EU’s plan is significantly smaller than the US’s USD 500bn Stargate project and China’s ongoing state-backed AI initiatives. However, Europe is prioritising independent AI research and infrastructure against over-reliance on tech giants.

The US recently launched Stargate, a USD 100bn AI infrastructure project backed by OpenAI, SoftBank, Oracle, and MGX, with contributions from Microsoft, Nvidia and Arm. Over the next 4 years, Stargate funding could reach USD 500bn, dwarfing the EU’s current commitment.

Meanwhile, China continues expanding its AI sector despite trade restrictions on advanced semiconductors. Chinese AI firm DeepSeek recently unveiled models that rivalled Western counterparts, raising concerns that massive investments in cutting-edge chips, such as those from Nvidia, may not be as critical as previously believed.

Von der Leyen acknowledged that Europe has lagged behind since OpenAI’s release of ChatGPT in 2022 triggered an AI investment boom. To address this, the EU is leveraging both public and private investments. More than 20 leading private equity firms, including Blackstone, KKR and EQT, have pledged EUR 150bn for AI-related projects across Europe, with the EC adding another EUR 50bn through Invest AI.

CEE AI factory specialisations

The first wave of Invest AI funding will come from existing EU financial programmes, with member states encouraged to contribute. The plan follows a multi-layered investment approach to attract a broad spectrum of investors. The primary objective is to establish state-of-the-art AI gigafactories across Europe, each equipped with 100,000 cutting-edge AI chips, supercomputing capabilities for large-scale model training and a combination of grant funding and equity financing to ensure long-term sustainability.

The Vienna-based AI factory will focus on industrial AI applications, leveraging Austria’s strong manufacturing and automation sectors. The facility aims to provide AI-powered solutions for production optimisation, predictive maintenance and process automation, catering to the country’s advanced engineering and automotive industries.

Bulgaria’s AI factory in Sofia will specialise in AI-driven cybersecurity and data analytics. Positioned as a regional leader in digital security, BRAIN++ aims to develop AI models for threat detection, fraud prevention, and secure data management.

The Polish AI factory in Poznan will focus on AI in healthcare and life sciences. By harnessing Poland’s growing biotech and medical research ecosystem, PIAST AIF will work on AI-driven diagnostics, medical imaging, and drug discovery, collaborating with local universities and research institutions on medical tech.

Slovenia’s AI factory in Maribor will be dedicated to sustainable AI and green technologies. With Slovenia’s commitment to environmental innovation, SLAIF will develop AI applications for energy efficiency, smart grids, and climate monitoring.

Von der Leyen said AI will define the next era of technological leadership and that Europe cannot afford to remain a spectator.