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GRAPHICS: France: Macron Announces 109B Euro Investment in AI | 12:23

Feb 11, 2025 | 06:38 GMT

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What Happened: France will commit 109 billion euros ($112.5 billion) in private sector artificial intelligence investments over the coming years, French President Emmanuel Macron announced in a broadcast with France 2 on Feb. 9. Funding will reportedly come from a range of domestic and foreign investors, including the United Arab Emirates and Canada, which will commit a combined 50 billion euros to developing AI infrastructure in the country.

Why It Matters: Macron's announcement highlights Europe's growing concerns about falling behind in the global AI race, particularly as the United States and China increase investment in AI projects and export restrictions on advanced technologies. Given France's position as one of Europe's largest economies, growing investment in the country's AI sector will help foster the nascent industry across the Continent. However, it is unclear whether Europe's pledged investments will match those of its larger international competitors. Moreover, even if European companies receive more funding for AI projects in the coming years, the European Union's stringent regulations like the Artificial Intelligence Act may still stymie the pace of innovation by requiring companies to submit AI models and products to thorough testing and review processes before release.

Background: France is home to Mistral AI, one of Europe's most competitive AI companies that has raised more than 1 billion euros since its launch in 2023. Macron called the plan an "equivalent for France of what the U.S. announced for Stargate," referencing a U.S. joint venture that includes AI powerhouse companies OpenAI, Oracle and SoftBank, which have pledged to invest more than $500 billion in AI over the next several years. The European Union is also pursuing the EU AI Champions Initiative, which will seek to elevate AI investments in the next five years and has received support from more than 60 European companies including German automaker Volkswagen and Swedish streaming company Spotify.

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