US's $500 Billion AI Project: A Big Challenge for Europe

The US has officially launched an artificial intelligence (AI) race with huge investment, putting great pressure on Europe to maintain its competitive position.

President Donald Trump has just announced a $500 billion project to build AI infrastructure in the US, starting with a data center in Texas.

The ambition and scale of this project has caused a stir in Europe. Professor Holger Hoos of RWTH Aachen University (Germany) said that the European Union's (EU) investment in AI is only 1.5 billion euros, mainly for supercomputers supporting startups and research, a figure that is too small compared to the initial investment of 100 billion USD by the US.

Mr. Christian Miele - partner at the investment fund Headline - commented that President Trump's project is a big challenge for Europe. Meanwhile, President of the European Commission Ursula von der Leyen and President of France Emmanuel Macron both affirmed that AI is an important factor for Europe to restore its leading position, however, the continent is still facing many significant challenges.

The US Stargate project has attracted the participation of many large corporations such as SoftBank (Japan), OpenAI, Oracle and Nvidia. This ecosystem not only includes strong investors but also receives support from large technology companies such as Microsoft.

Meanwhile, Europe has struggled to raise private capital. Investor Giorgos Verdi said Europe lacks the tech giants of the US and does not have the privilege of working with them.

In addition, the energy required to run AI data centers is a major problem for Europe, especially as energy prices have soared following the conflict in Ukraine. In contrast, President Trump has declared a national energy emergency to boost oil and gas production and ensure supplies.

Under pressure from the US, Europe is trying to find solutions to increase competitiveness. European Commission President Ursula von der Leyen stressed in the European Parliament that AI is a strategic area that requires close cooperation between member states.

France Digitale, an organization representing technology companies, has proposed sweeping reforms in the EU to attract more investment. A new company law is also being drafted to address overlaps and lack of uniformity in current regulations.

Experts say that the EU is unlikely to compete directly with the US in the field of AI due to significant differences in resources and infrastructure. Instead of racing for scale, Europe is advised to focus on small AI projects that are suitable for its current capabilities and bring practical value. At the same time, Europe needs to clearly recognize the limitations in catching up with the US, thereby reorienting its AI strategy and focusing on areas where the continent can maximize its competitive advantage.

According to VNA

Source: https://doanhnghiepvn.vn/quoc-te/du-an-ai-tri-gia-500-ty-usd-cua-my-thach-thuc-lon-cho-chau-au/20250123084855992