European Commission President Ursula von der Leyen highlighted the initiative's focus on establishing AI 'gigafactories' to foster collaborative AI model development.

In addition to the EU's efforts, French President Emmanuel Macron announced a separate investment of €109 billion (approximately USD 112 billion) dedicated to advancing AI in France.

At the AI Action Summit in Paris, the European Union unveiled a substantial €200 billion initiative aimed at bolstering its AI capabilities and competing with global rivals.

The summit emphasized the geopolitical stakes of AI, with around 60 countries supporting a declaration aimed at ensuring safe and trustworthy AI technology, although the U.S. and U.K. opted out due to national security concerns.

Sundar Pichai, CEO of Alphabet and Google, urged governments to create public policies that manage risks while promoting innovation, advocating for uniform global AI regulations.

The discussions at the summit reflected a shift in tone, with participants expressing concerns about the risks of missing out on AI opportunities.

Analysts warn that the EU risks falling behind in the AI race as the U.S. consolidates its position, highlighting a winner-takes-all dynamic in the industry.

In a notable regulatory shift, the EU decided to withdraw the ePrivacy Regulation and the Artificial Intelligence Liability Directive, which would have facilitated legal actions against companies for AI-related damages.

Concerns were raised about the EU's regulatory frameworks, such as the AI Act, which many entrepreneurs view as barriers to startup growth, prompting some to seek funding in the U.S.

The potential for AI to transform economies is significant, but it also raises concerns about workforce displacement, underscoring the need for investment in education and reskilling.

Von der Leyen emphasized the necessity of guiding innovation responsibly, aiming to strike a balance between fostering trust and maintaining agility in AI development.