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EU’s AI Push to Get 50 Billion Euro Boost, Says von der Leyen

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The European Union will inject 50 billion euros ($51.6 billion) into its artificial intelligence (AI) initiatives to strengthen the bloc’s position in the race for technological leadership, European Commission President Ursula von der Leyen announced on Tuesday. This investment will support the European AI Champions initiative, which has already secured 150 billion euros in private sector pledges from major companies, including Airbus, ASML, Siemens, Infineon, Philips, Mistral, and Volkswagen.

The EU’s financial commitment aims to mobilize a total of 200 billion euros for AI investments in Europe, combining both public and private funding. Von der Leyen made the announcement at the Paris AI Summit, underscoring the EU’s determination to accelerate AI development in the region.

However, the EU’s investment falls short when compared to the up to $500 billion in private sector funds announced by U.S. President Donald Trump last month for AI infrastructure. Despite this, von der Leyen emphasized that the EU’s focus would be on industrial and mission-critical technologies, aiming to enhance Europe’s competitiveness in these areas.

As part of the EU’s AI investment plan, 20 billion euros will be allocated to finance the construction of four AI gigafactories across the bloc. This will complement the seven AI gigafactories announced in December, marking a significant step in scaling AI infrastructure across Europe.

OpenAI Set to Finalize First Custom Chip Design This Year

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OpenAI is advancing toward its goal of reducing its reliance on Nvidia by finalizing the design of its first in-house artificial intelligence (AI) chip, sources familiar with the matter told Reuters. The company plans to send its first custom-designed chip for fabrication at Taiwan Semiconductor Manufacturing Co. (TSMC) in the coming months, marking a significant step toward mass production, which is expected to begin in 2026.

The process, referred to as “taping out,” involves sending the chip design to a factory for production. While the initial tape-out can cost tens of millions of dollars and take six months for completion, there’s no guarantee the first version of the chip will be successful. If issues arise, OpenAI would need to diagnose and repeat the tape-out process, which can delay production further.

OpenAI views this chip development as a strategic move to enhance its negotiating position with other chip suppliers. The company’s engineers plan to build upon this initial design, creating increasingly advanced processors with broader capabilities for future iterations. If the first tape-out is successful, OpenAI aims to test its custom AI chip as a potential alternative to Nvidia’s chips later this year.

OpenAI’s in-house team, led by Richard Ho, who joined from Google’s custom AI chip program, is collaborating with Broadcom to design the chip. Despite being a smaller team compared to those at tech giants like Google and Amazon, OpenAI’s chip development is progressing at a remarkable pace, outpacing the years-long efforts of other companies in the space.

Currently, Nvidia dominates the AI chip market with an 80% share, but the increasing costs and reliance on a single supplier have prompted major companies, including OpenAI, to explore alternatives. OpenAI’s custom chip is designed to train and run AI models and will initially be deployed on a limited scale. The chip will be manufactured using TSMC’s advanced 3-nanometer process technology and will feature systolic array architecture, high-bandwidth memory (HBM), and extensive networking capabilities—similar to Nvidia’s chips.

While the first chip is expected to play a limited role within OpenAI’s infrastructure, the company plans to expand its AI chip program in the future. To match the scale of Google or Amazon’s AI chip programs, OpenAI would need to expand its engineering team significantly.

Salesforce to Invest $500 Million in AI Ventures in Saudi Arabia

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Salesforce announced on Monday that it plans to invest $500 million in artificial intelligence (AI) initiatives in Saudi Arabia, underscoring the country’s competitive push to attract critical tech investments. The investment will be a key part of Salesforce’s efforts to introduce its Hyperforce platform architecture in the region, leveraging a strategic partnership with Amazon Web Services (AWS).

The announcement comes amid a global surge in AI investments, as countries ramp up efforts to become leaders in the fast-growing technology. This trend follows a shift in regulatory approaches, particularly after U.S. President Donald Trump overturned an executive order that sought to impose restrictions on AI advancements.

In addition to launching Hyperforce, Salesforce will collaborate with major global firms such as Capgemini, Deloitte, Globant, IBM, and PwC to expand the use of its AI product, Agentforce, which is designed for customer service agents. Another key aspect of the plan includes offering Arabic language support for Salesforce’s AI product suite, aiming to make the technology more accessible to local businesses.

Salesforce made this announcement at Saudi Arabia’s global tech event, LEAP 2025, where the country secured $14.9 billion in AI investments. Earlier in the month, Salesforce also revealed plans to establish a regional headquarters in Riyadh and to upskill 30,000 Saudi citizens by 2030, further cementing its commitment to fostering AI growth in the region.