Paris, France – French President Emmanuel Macron has unveiled a historic €109 billion (NZD $200 billion) artificial intelligence (AI) investment plan, positioning France as a major player in the increasingly competitive global AI industry. The announcement, made ahead of the AI Action Summit in Paris, shows France’s ambitions to rival AI powerhouses like the United States and China.
France’s “Stargate” Moment
Macron described the investment as France’s equivalent to the U.S. “Stargate” AI initiative, a $500 billion private sector project backed by OpenAI, Oracle, and SoftBank. Speaking on French television, he emphasised that the funding would significantly boost France’s AI infrastructure, research, and talent development.
The AI Action Summit, co-chaired by Macron and Indian Prime Minister Narendra Modi, has brought together world leaders, tech executives, and researchers to discuss the future of AI. Attendees include U.S. Vice President JD Vance, European Commission President Ursula von der Leyen, German Chancellor Olaf Scholz, and CEOs from Google, Microsoft, OpenAI, DeepMind, and Anthropic.
Breakdown of the Investment
The €109 billion AI investment will primarily come from private sources, with contributions from global investment funds, the United Arab Emirates (UAE), and major French companies. Key funding commitments include:
- United Arab Emirates: €30-50 billion to build a 1-gigawatt AI data centre in France.
- Brookfield (Canada): €20 billion toward AI infrastructure projects.
- Bpifrance (French state investment bank): €10 billion in AI startups, data centres, and specialised AI funds.
- Iliad Group (France): €3 billion for AI infrastructure.
- Mistral AI (France): Investment in a domestic AI data centre.
- Current AI (France): A new public-interest fund aiming to raise €2.5 billion for ethical AI development.
These investments will accelerate the expansion of computing power, academic research, and AI-focused public-private partnerships.
Global AI Competition Heats Up
Macron’s announcement comes as Europe seeks to close the gap with the U.S. and China in AI dominance. The European Union is stepping up its AI initiatives, with von der Leyen bringing out InvestAI, a €200 billion plan to fund AI research and four “AI gigafactories” across Europe. These gigafactories, modelled on public-private partnerships like CERN, will provide large-scale AI computing power to European researchers and companies.
Despite these efforts, challenges persist. The EU’s AI Act, which came into force in August 2024, imposes strict regulations on AI developers, raising compliance costs and potentially slowing down innovation. Macron has pushed for a balanced approach, arguing that France must innovate before overregulating.
Challenges and Opportunities
While the massive investment is a game-changer for France’s AI sector, there are several hurdles to overcome:
- Regulatory constraints: The EU’s AI Act adds layers of complexity to AI governance.
- Talent competition: France must compete with the U.S. and China for top AI researchers and engineers.
- AI startup ecosystem: France needs a strong network of AI startups to compete with Silicon Valley and China’s tech giants.
However, France also has key advantages, including world-class research institutions, a strong clean-energy sector, and growing international partnerships. Macron has said that France will lead in “clean-energy AI”, leveraging its role as a major clean-energy exporter to develop sustainable AI solutions.
What’s Next?
The AI Action Summit has demonstrated that AI is no longer just a technological race—it is also a geopolitical contest. As global leaders debate AI regulations, investments, and security concerns, France’s €109 billion bet signals a bold commitment to shaping the future of AI.
With the UAE, Canada, and French firms backing the initiative, France is emerging as a serious AI contender. However, the next challenge will be turning investment into innovation—and ensuring that Europe can keep pace in the global AI race.