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The European Union is mobilizing €200 billion in AI investments, including a €20 billion fund for AI gigafactories, to build advanced infrastructure and help Europe compete with the US and China in artificial intelligence. The initiative aims to triple the region’s data center capacity and foster public-private partnerships to accelerate AI innovation and scale. <figure id="figure-hggju15b4imc3ht0oi"><img id="hggju15b4imc3ht0oi" src="https://media.gettyimages.com/id/847029458/photo/3d-processor.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=wOlWjCKsjqRhQklWURllk9BrsZyH5j-ttSLVRQ8rDpU=" alt="3d processor" title="3d processor" class="object-cover bg-gray-100 " style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/847029458/photo/3d-processor.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=wOlWjCKsjqRhQklWURllk9BrsZyH5j-ttSLVRQ8rDpU=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure> This article highlights unprecedented public and private capital flowing into European AI, validating the opportunity for VCs to back startups that will benefit from this infrastructure surge—especially in undercapitalized regions like Central Europe.To read more, see <a data-mce-href="https://www.wsj.com/tech/ai/eu-bets-on-gigafactories-to-catch-up-with-u-s-china-in-ai-race-283683b8" href="https://www.wsj.com/tech/ai/eu-bets-on-gigafactories-to-catch-up-with-u-s-china-in-ai-race-283683b8" data-mce-selected="inline-boundary">Wall Street Journal's </a>article.

EU Bets on Gigafactories to Catch Up With U.S., China in AI Race

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The <a data-mce-href="https://www.ft.com/content/e6aef340-313b-483d-9a00-c1f4fc14df86" href="https://www.ft.com/content/e6aef340-313b-483d-9a00-c1f4fc14df86" data-mce-selected="inline-boundary">FT</a> reports on a new wave of European startups, many in AI, that are transforming traditional industries and aiming for global leadership. The article notes that Europe’s strength lies in AI applications, and that hubs across the continent—including Germany and Poland—are fostering ambitious companies that could become future global leaders.This piece underscores the rise of AI-powered startups in Europe and the region’s potential to compete at the application layer, directly aligning with 238 Capital’s focus on growth-stage AI ventures in Central Europe.

Europe's start-ups are using AI to reimagine business models

EU Flags Flying at the European Commission Building Brussels Belgium

<figure id="figure-xcheovjonbmcawlzbg"><img id="xcheovjonbmcawlzbg" src="https://cdn.durable.co/covers/8VxaaQGuFMg0KXEdQeGa8rDVaZj4QCzu3YYkOXoYMrhugXnaC0pFS7fnALevg2SW.png" alt="" title="" class="object-cover bg-gray-100 rounded-lg md:rounded-xl lg:rounded-2xl" style="aspect-ratio: 1/1; object-position: 100% 100%;" data-corners="medium" data-aspect="1:1" data-caption="" data-positionX="100%" data-positionY="100%" data-fullWidth="false"/></figure> The <a data-mce-href="https://digital-strategy.ec.europa.eu/en/news/second-wave-ai-factories-set-drive-eu-wide-innovation" href="https://digital-strategy.ec.europa.eu/en/news/second-wave-ai-factories-set-drive-eu-wide-innovation">European Commission</a> announced that Germany and Poland are among six countries selected to host new AI Factories, with a combined €485 million in national and EU investment. These facilities will provide startups and SMEs with privileged access to computing power, data, and talent, aiming to accelerate AI innovation and scale-up across Europe.This news confirms significant infrastructure and funding commitments to AI in Germany and Poland, directly strengthening the case for investing in local AI startups poised to leverage these resources.

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EU Bets on Gigafactories to Catch Up With U.S., China in ...

Europe's start-ups are using AI to reimagine business models

Second wave of AI Factories set to drive EU-wide innovation