Built for Purpose?

This policy brief published together with the think tank Interface analyses the feasibility of the AI Gigafactories (AIGF) initiative in achieving its goal to train and deploy frontier AI models. With the official call for AIGF proposals expected soon, we hope our analysis can support the review process by offering insights into private sector dynamics and actionable policy recommendations to strengthen Europe’s AI ecosystem in the long term.

Our key argument: success in AI development and adoption hinges not only on compute infrastructure – but critically on demand. The global compute ecosystem is shaped by two distinct client groups:

• A few anchor customers (frontier AI labs developing large models with high workloads), and
• A broad base of smaller users (startups, companies, and research institutions) whose demand must be aggregated.

To ensure AIGF proposals are impactful and aligned with Europe’s strategic interests, we recommend focusing on three priorities:

• Demand quantification: Include projected AI workloads and concrete user commitments.
• Realistic objectives: Align infrastructure buildouts with EU AI industry dynamics and strategic goals.
• Clear value proposition: Distinguish AIGFs from hyperscalers and neoclouds through tailored services and ecosystem offerings.