EU’s €5 billion Scaleup Europe Fund goes live

The European Commission has opened a formal call for tenders to establish up to seven AI gigafactories across Europe, backed by €10 billion in public funding and designed to unlock at least €20 billion more in private investment. Separately, the Commission completed the legal steps to make the €5 billion Scaleup Europe Fund fully operational, marking a twin push to anchor advanced technology development on European soil.

AI Gigafactories: Europe's Largest Computing Bet

The AI gigafactories tender, published by the European High Performance Computing Joint Undertaking (EuroHPC JU), represents what the Commission calls one of the largest public-private partnerships in the world for AI development. Up to €5 billion will come from the EU budget, matched by at least €5 billion from participating member states, with the combined public commitment intended to attract more than €20 billion in private capital.digital-strategy.europa+3

The number of planned gigafactories was raised from five to seven after an expression of interest last year drew 77 proposals from 16 member states. Each facility will combine advanced AI processors, cloud technology, high-speed connectivity, and energy-efficient data centres to support the full lifecycle of large AI models — from training to inference.reuters+3

"Access to the raw scale of computing power within AI Gigafactories is a strategic necessity for Europe as AI development accelerates," EU tech commissioner Henna Virkkunen said. The tender closes on November 12, with successful bidders expected to be announced in early 2027 and facilities becoming operational within 18 months of contract signing.dw+1

Scaleup Europe Fund Becomes Operational

On the same day, the Commission finalized the legal framework for the Scaleup Europe Fund, enabling EQT — the Swedish private equity firm selected in May through a competitive process — to begin making investment decisions independently. The first investments are expected in the coming weeks.eqtgroup+1

The fund targets European technology companies from Series B onward in sectors including artificial intelligence, quantum computing, biotechnology, and clean technologies. Its founding investor group includes Novo Holdings, Allianz, APG Asset Management on behalf of Dutch pension fund ABP, Wallenberg Investments, and Santander Banco Santander, S.A. ↘ 2.00% through Mouro Capital, alongside the Commission's own €1 billion commitment.europeansting+2

Closing Europe's Capital Gap

Both initiatives respond to the same structural challenge: Europe produces strong research and startups but struggles to retain them as they scale. The AI gigafactories aim to ensure European firms can train frontier models without relying on non-European infrastructure, while the Scaleup Europe Fund targets the late-stage financing gap that has pushed companies to seek capital — and often relocate — outside the bloc.innovationnewsnetwork+1

President Ursula von der Leyen, who first announced the Scaleup Europe Fund during her 2025 State of the Union address, said: "When Europe invests in its innovators, Europe invests in its future".innovationnewsnetwork