The European Union’s Bold Step into AI: A $56 Million Investment in Open Source Language Models
In a significant shift from its traditional stance, the European Union (EU) is making a bold move to invest in artificial intelligence (AI) rather than just regulate it. This change comes in response to the escalating global competition in AI, particularly following the emergence of a powerful new open source model from China’s DeepSeek. Built at a fraction of the cost of its U.S. counterparts, DeepSeek’s model has prompted the EU to step off the sidelines and into the fray. Today, Brussels announced a $56 million investment to develop its own open source AI model.
This investment will bring together top researchers from various companies and universities across EU countries. Their mission is to develop a large language model (LLM) capable of working with the EU’s 30 languages. The project will leverage supercomputers from companies like Spain’s Mare Nostrum and Italy’s Leonardo, both of which have received EU funding.
While the $56 million budget is modest compared to the vast sums being invested in leading American AI labs like OpenAI, which is reportedly raising up to $25 billion at a $300 billion valuation, it is a significant step for the EU. Even Europe’s own AI unicorn, Mistral, raised $640 million last year. However, given DeepSeek’s breakthrough, the EU’s investment could have a substantial impact. The EU’s backing for the project is ten times what DeepSeek claims to have spent on training its own R1 model. “I think Europe should be now seen to be in the race again,” says project coordinator Jan Hajič, a professor of computational linguistics at Prague’s Charles University.
Building an Open Source Future
The EU’s project aims to create an open source LLM that European companies and governments can build upon, ensuring it aligns with the EU’s values. Open source models allow users to make tweaks and modifications, unlike the more closed systems of OpenAI and Anthropic. “There’s a need for open source models that are aligned in terms of languages, values, and with society at large,” says Peter Sarlin, cofounder of Finnish AI lab AMD Silo. Although Mistral, based in Paris and valued at over $6.2 billion last year, has made a similar pitch, it is not participating in this project.
Why Europe Needs Its Own LLM
There are compelling reasons for Europe to develop its own LLM. Companies like Meta and OpenAI have slowed or blocked the release of AI tools in Europe due to legal risks associated with the EU’s AI Act. This legislation, which seeks to ban “high-risk” uses of AI, will take effect in February. In an open letter published last year, Meta founder Mark Zuckerberg and Spotify cofounder Daniel Ek warned that “incoherent and complex regulation” could cause Europe to fall further behind in AI.
EU’s Strategic Moves to Boost Tech
Since passing the AI Act last summer, the EU has taken steps to strengthen its tech sector. Its annual budget for research grants has increased by a quarter to $1.5 billion. Additionally, the EU plans to invest $1.5 billion in upgrading its network of supercomputers. Last week, EU Commission President Ursula von der Leyen unveiled plans to stimulate growth among its 27 member nations.
Lessons from Past Endeavors
For some, the current project is reminiscent of a failed $550 million initiative to create a European search engine to rival Google. Critics question the wisdom of investing public money when venture capitalists are eager to fund private projects. “Sprinkling money around in a fragmented fashion is more about PR than driving actual results and impact,” warned tech investor Rasmus Rother of Merantix Capital.
Key Takeaways
- The EU is investing $56 million in an open source AI model to compete globally.
- The project will involve top researchers and leverage EU-funded supercomputers.
- Open source models offer flexibility and alignment with EU values.
- Regulatory challenges have slowed the release of AI tools in Europe.
- Past failures highlight the risks of public investment in tech projects.
As the EU embarks on this ambitious project, it aims to position itself as a significant player in the global AI landscape. By focusing on open source models, the EU hopes to foster innovation while ensuring that its technological advancements align with its core values and societal needs.
Originally Written by: Iain Martin
