📢 THE EU's €200 BILLION BET ON AI: WHAT InvestAI MEANS FOR BUSINESSES AND COMPLIANCE

Europe’s AI Ambitions Take Center Stage

On 11th of February 2025, at the AI Action Summit in Paris, European Commission President Ursula von der Leyen announced InvestAI, a groundbreaking initiative set to mobilise €200 billion to position Europe as a global leader in artificial intelligence.

With AI innovation accelerating worldwide, the EU is doubling down on AI investment, regulation, and governance, ensuring that Europe remains competitive while maintaining its strong commitment to ethics, transparency, and compliance.

What is InvestAI?

InvestAI is a multi-billion-euro initiative designed to support the growth of AI infrastructure, research, and business adoption.

The European Commission envisions this project as the “CERN for AI”, fostering open, collaborative AI development while ensuring regulatory alignment with the EU AI Act.

Key elements of InvestAI include:

• AI GigaFactories: A new €20 billion European AI Fund will support large-scale AI computing facilities, ensuring European startups and enterprises have access to cutting-edge AI development resources

• Public-Private Partnerships: A coordinated effort between the European Commission, Member States, and private sector investors to fund strategic AI advancements

• AI Supercomputing & Data Access: Expansion of EuroHPC supercomputing to facilitate the training of AI models on high-quality industrial and public data

Legal and Regulatory Considerations for AI Companies

While InvestAI presents a massive opportunity for businesses and AI developers, it also raises important legal and regulatory questions:

1. AI Compliance Under the EU AI Act

With AI regulation now taking shape, businesses receiving InvestAI funding must comply with the EU AI Act’s risk-based framework. This includes:

• High-risk AI systems requiring strict compliance measures (e.g., financial services, healthcare AI)

• Transparency obligations for AI models impacting consumer rights

• Human oversight and bias mitigation requirements

2. Data Protection & AI Governance

AI firms leveraging public and industrial data for model training must navigate:

• GDPR compliance for AI-driven data processing

• Cross-border data transfer restrictions for AI training data

• Ethical AI governance ensuring non-discrimination and fairness

3. Investment & Competition Law Considerations

InvestAI will create new AI funding and investment opportunities, but:

• State aid rules could impact funding eligibility

• Competition law concerns may arise if AI infrastructure is concentrated among a few players

How AI Businesses Should Prepare

With InvestAI poised to reshape Europe’s AI landscape, businesses, startups, and investors should take proactive steps to align with emerging regulatory frameworks:

• Assess AI risk classifications under the EU AI Act to ensure compliance

• Implement AI governance policies to meet transparency and accountability requirements

• Engage with policymakers and funding programs to leverage AI investment opportunities

• Monitor legal developments on AI antitrust and intellectual property rights

Final Thoughts: A Defining Moment for AI in Europe

InvestAI marks a turning point in European AI development, setting the stage for unprecedented AI growth, regulation, and ethical oversight. For businesses, this presents both opportunities and challenges, offering access to funding and infrastructure while increasing compliance requirements.

At Pelaghias, Christodoulou, Vrachas LLC, we help clients navigate AI regulations, investment frameworks, and compliance challenges. If your company is looking to capitalise on AI funding opportunities while staying compliant, contact our AI & Tech Department at info@pelaghiaslaw.com to discuss your AI Legal Strategy.