European Commission Plans 3 Million GPU Purchase for AI Super Factories

Plans for a large-scale AI factory in Europe are advancing rapidly, with the latest proposals requiring at least 3 million of the latest generation of AI graphics processors. The European Commission, through its member responsible for technology sovereignty, security, and democratic affairs, has indicated that the plans involve the collective acquisition of at least 3 million of the latest AI processors. This initiative involves 76 companies proposing to establish AI factories across 60 different locations in 16 member states, with proposals coming from both European and non-European companies.

NVIDIA, led by Jensen Huang, is a major manufacturer of AI accelerators, with an estimated market share ranging from 70% to 95%. AMD, led by Lisa Su, also plays a role in the AI accelerator market, though with a smaller market share. The European AI super factories are expected to be equipped with at least 3 million GPUs, positioning NVIDIA as a potential major beneficiary. The European Commission has announced a budget of 230 billion dollars to build four AI "super factories" across the EU, with the specific locations of these factories to be announced by the end of the year.

This development underscores the growing demand for high-performance computing resources in the AI sector, driving significant investments in GPU technology. The competition between NVIDIA and AMD in the AI accelerator market is intensifying, as both companies vie for a larger share of this lucrative segment. The deployment of 3 million GPUs in European AI super factories highlights the strategic importance of GPU technology in advancing AI capabilities. This move is expected to boost the demand for GPUs, further solidifying NVIDIA's position as a leading provider of AI accelerators. The AI industry's reliance on powerful computing resources is evident in the scale of these investments, which are aimed at supporting the development of advanced AI applications. The European AI super factories are set to play a crucial role in driving innovation in the AI sector, with the deployment of 3 million GPUs representing a significant milestone in the industry's evolution.