Tag: European Commission

  • EU Plans $34.6B AI Factory to Double Compute Capacity with Hubs

    EU Plans $34.6B AI Factory to Double Compute Capacity with Hubs

    Key Takeaways

    1. The European Commission has allocated €10 billion for the first network of 13 regional AI factories and plans to invest an additional €20 billion for larger gigafactories.

    2. Each gigafactory is expected to cost between €3 and €5 billion and will house at least 100,000 high-performance GPUs, significantly increasing Europe’s AI computing power.

    3. The initiative aims to enhance Europe’s sovereignty in AI by providing centralized infrastructure for start-ups and SMEs to access affordable resources for training and inference.

    4. Securing adequate electricity supply poses a challenge, as a single gigafactory may consume up to one gigawatt of power, necessitating upgrades to power grids and generation capacity.

    5. Initial pilot factories are already operational, with projects like Telenor’s AI factory in Norway and a major facility opening in Munich, aiming to close the trans-Atlantic AI gap.

    Europe’s “AI factory” initiative has transitioned from being just an idea to actual building, with the European Commission allocating €10 billion (≈ US$11.6 billion) for the first network of 13 regional AI factories. Additionally, they plan to invest another €20 billion (≈ US$23.2 billion) to kickstart a second phase of much larger gigafactories.

    Ambitious Scale of Gigafactories

    These gigawatt-class facilities are quite ambitious: each is expected to cost between €3 and €5 billion (≈ US$3.5–5.8 billion) and will contain at least 100,000 high-performance GPUs. They are projected to provide significantly more computing power than the largest current AI clusters in Europe. According to UBS modeling, if 10 to 15 of these plants are fully constructed, they could contribute around 1.5 to 2 GW of IT load—approximately 15% of Europe’s existing data center capacity.

    Aiming for Sovereignty

    Brussels presents this project as a matter of sovereignty. The European Union has around 30% more AI researchers per capita compared to the United States, yet it lacks sufficient computing resources to meet their goals. By bringing together hardware, data, and expertise in centralized “one-stop shops,” the Commission aims to provide start-ups and small-to-medium enterprises (SMEs) with affordable access to large-scale infrastructure for training and inference.

    Electricity Supply Challenges

    However, securing enough electricity might be a significant challenge. Experts warn that a single gigafactory could consume as much as one gigawatt of power, which is similar to the output of a mid-size nuclear power plant. Upgrading the existing power grids and increasing generation capacity will likely require more time than constructing the data centers themselves. The role of private investment remains uncertain; officials acknowledge that public funding alone won’t bridge the financial gap, and think tanks like Bruegel have raised concerns about whether subsidies are the right approach for such large-scale projects.

    Progress on Pilot Sites

    Some initial pilot factories are already operational. Telenor’s small AI factory in Norway has started testing language services for public-sector clients, while the first major EU facility is set to open in Munich in early September. If the challenges related to power and financing are addressed, Brussels is optimistic that this computing infrastructure will help close the trans-Atlantic AI gap and foster a new wave of European models and applications.

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  • Microsoft Claims Google Funds Campaign Against Its Cloud Services

    Microsoft Claims Google Funds Campaign Against Its Cloud Services

    Through a blog entry written by Rima Alaily, who is Microsoft’s CVP and Deputy General Counsel, the tech behemoth from Redmond is claiming that Google is running a covert operation to tarnish its reputation before the European Commission.

    Google’s Complaint

    In September, Google officially lodged a complaint against Microsoft with the European Commission, alleging that the company engages in anti-competitive licensing methods. It accused Microsoft of employing outdated licensing strategies that keep customers locked into a single cloud environment.

    Google highlighted that Microsoft has interconnected Teams, its communication platform, with its main SaaS (Software as a Service) products, Office 365 and Microsoft 365. In the complaint, Google claimed that Microsoft is also doing this with Microsoft Azure, making it difficult for customers in Europe to “transfer their existing Microsoft workloads to other cloud services – despite there being no technical reasons preventing it – or impose what Microsoft acknowledges is a massive 400% price increase.”

    Microsoft’s Response

    Microsoft contends that Google is attempting to divert the attention of regulators from the ongoing legal challenges the company is currently facing. There are over 24 antitrust inquiries into Google in major digital markets around the globe.

    Microsoft asserts that Google is trying to skew the regulatory environment to its advantage instead of competing fairly in the cloud services market. The company argues that Google is using the OCC (Open Cloud Coalition) as a guise to gain regulatory support. This coalition, which was launched today, includes global companies like Civo and Gigas, as well as smaller firms such as Pulsant, Clairo, and Room 101.

    Coalition’s Goal

    Nicky Stewart, a spokesperson for the coalition and former ICT chief in the UK Cabinet, stated that the group aims to encourage lawmakers to examine restrictive contracts and support a more open and adaptable market for competitors.

    Microsoft, Google, European Commission, Gov.uk

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  • Intel Stock Soars After EU Antitrust Probe Ends Favorably

    Intel Stock Soars After EU Antitrust Probe Ends Favorably

    At the close of January 2022, Intel successfully contested a fine exceeding one billion Euros that was originally issued in 2009. The Luxembourg-based General Court had previously decided to overturn the European Commission’s penalty. They criticized the way the Commission analyzed Intel’s rebates to companies like Dell, HP, NEC, and Lenovo, arguing that it misinterpreted these actions as attempts to hinder AMD’s presence in the market. Now, it seems that the final blow has been dealt to the European Commission’s allegations, at least in this instance.

    Court Decision Finalized

    "The Court of Justice dismisses the Commission’s appeal, thereby upholding the judgment of the General Court," noted Reuters earlier today. A few months back, a court advisor shared his views on the swift actions of EU regulators, pointing out that they seemed to have rushed their decisions without performing a thorough economic analysis.

    Intel’s Stock Performance

    For anyone interested in the legal documents associated with this case, they should search for "T-286/09 P Intel Corporation v Commission." This search will yield a wealth of helpful information, especially for those studying cyberlaw. For others, the key takeaway is that Intel has emerged victorious. Despite experiencing a more than 50% decline in the past year, the tech giant is showing signs of recovery in the stock market. Intel’s stock increased by a respectable 1.64% today, closing at $22.34 per share.

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  • Apple and Google under investigation by European Commission for compliance with Digital Services Act

    Apple and Google under investigation by European Commission for compliance with Digital Services Act

    European Commission Requests Information from Apple and Google on Risk Management Practices in App Stores

    The European Commission has formally requested information from tech giants Apple and Google regarding their risk management practices within their app stores. This move comes as both the App Store and Google Play have been designated as “Very Large Online Platforms” (VLOPs) under the recently enacted Digital Services Act (DSA). As VLOPs, these platforms are subject to compliance with the DSA, and the Commission is particularly interested in identifying and mitigating “systemic risks” associated with them.

    Identifying and Mitigating Systemic Risks

    The European Commission’s inquiry focuses on the potential risks posed by these app stores, including the dissemination of illegal and harmful content, as well as the potential negative impacts on fundamental rights, public security, public health, and minors. The Commission aims to understand how Apple and Google address these issues within their app ecosystems.

    Transparency and Clarity in Risk Management

    One key aspect of the inquiry is the transparency of recommender systems and online advertisements linked to app stores. The Commission seeks clarity on areas such as the assessment of app safety before it goes live and the evaluation of targeted advertisements based on the anticipated audience. This inquiry highlights the need for clear guidelines and practices in these areas.

    Ambiguity Surrounding “Illegal and Harmful Content”

    A notable challenge outlined in the Commission’s request is the lack of a clear definition for “illegal and harmful content.” This ambiguity leaves room for interpretation, potentially encompassing aspects such as pre-launch app safety assessments and the determination of appropriate advertisements based on the target audience. The Commission seeks further information on how Apple and Google address this challenge.

    Deadline for Compliance

    Both Apple and Google have been given until January 15 to comply with the European Commission’s request for detailed information. Failure to do so could result in formal proceedings under Article 66 of the DSA, demonstrating the Commission’s commitment to enforcing the new regulations.

    In conclusion, the European Commission has requested information from Apple and Google regarding their risk management practices in their app stores. The Commission aims to identify and mitigate systemic risks associated with these platforms, particularly in relation to illegal and harmful content and potential negative impacts on fundamental rights and public security. The inquiry also focuses on the transparency and clarity of recommender systems and online advertisements. Apple and Google have until January 15 to provide the requested information, failure to do so could lead to formal proceedings under the DSA.

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