France invests €109 billion in AI to compete with OpenAI and DeepSeek

French President Emmanuel Macron has announced a €109 billion investment in artificial intelligence (AI) to establish France as a global leader, positioning it as a direct competitor to the $500 billion U.S. Stargate project. The announcement was made at the Third International AI Summit in Paris, highlighting the country’s strategic push into AI infrastructure and innovation. According to TechCrunch, most of the funding will be allocated to AI-focused data centers, with major contributions from investors such as the UAE (€50 billion), Brookfield (Canada, €20 billion), Bpifrance (France’s state investment bank, €10 billion), and Iliad (telecom provider, €3 billion). So far, €83 billion has been committed, with Orange and Thales expected to join soon.

Macron also addressed the relocation of leading French AI startups, including Mistral, Owkin, and Wandercraft, to the U.S., emphasizing that Europe remains competitive. He cited DeepSeek as proof that innovation doesn’t always require massive resources: "Everyone thought size was everything. But DeepSeek adapted OpenAI’s latest model and proved efficiency matters more." Meanwhile, Mistral’s CEO, Arthur Mensch, announced plans to invest billions into a French AI cluster, reinforcing the company’s role as one of Europe’s few competitors to OpenAI, Meta, DeepSeek, Anthropic, and Alibaba. "We will build a cluster that enables even more efficient AI training within months," Mensch stated.

A key advantage for France is its energy surplus, primarily generated from nuclear power, making it an ideal hub for energy-intensive AI data centers. In 2024, the country exported 90 TWh of electricity, further attracting foreign investors. Macron emphasized that France’s stable and clean energy infrastructure strengthens its position as a top destination for AI development.