French President Emmanuel Macron has announced a massive €109 billion ($112 billion) in private investments dedicated to the artificial intelligence (AI) sector. The announcement comes as Paris hosts the Artificial Intelligence Action Summit, marking the third major international gathering on AI following similar events in Bletchley Park, UK, and Seoul, South Korea.

In a televised interview on France 2 and India’s First Post, Macron emphasized the urgency of Europe accelerating its AI development, stating, “I can tell you this evening, Europe is going to speed up, France is going to speed up.” He outlined that the €109 billion investment will be allocated over the next several years to strengthen France’s AI ecosystem.

This investment, Macron claims, is an immediate response to massive investments that the U.S. has allocated to AI and especially the whopping $500 billion Stargate project. As he pointed out, France has invested the proportionate amount; after all, its population is only about five times smaller compared to the United States. “It’s the same ratio,” Macron said of France’s pledge to stay abreast in this new global competition in AI.

Over the past couple of days, investment commitments by both international and domestic players have been pouring in.

• United Arab Emirates (including MGX): between €30 and €50 billion
• Brookfield: A Canadian investment firm, €20 billion
• Bpifrance: A French public investment bank, €10 billion
• Iliad: A French telecom company, €3 billion

These commitments tally to around €83 billion ($85 billion) at Sunday close, with many of the French majors still left to reveal the amount they intend to invest; Orange and Thales are on that list, among others.

A large proportion of the investments would be allocated for AI-specific data centers, one of the major infrastructural demands that have direct relevance with Stargate’s project in the U.S. These AI clusters will supply computing power required in training AI models, an indispensable component for competition in the field.

Macron also addressed concerns about French AI startups relocating to the U.S. in search of better opportunities. Notable companies such as Mistral, Owkin, and Wandercraft have already shifted their headquarters overseas. However, Macron expressed confidence that Europe remains competitive, citing DeepSeek as an example of how AI firms can still thrive within the region.

He also remarked how DeepSeek’s open-source models still capitalized on previous AI breakthroughs but took a more “frugal approach”, so they could stay nimble and competitive. “Everyone is going to do this. And that’s why you have to be in this race,” Macron said.

One of France’s leading AI startups, Mistral, also announced plans to invest billions in a new AI cluster. CEO Arthur Mensch revealed that the company will allocate several billion euros toward developing an AI supercomputing hub in Essonne, a region just south of Paris.

We will do our share, and invest a few billion euros in a cluster, to be established in Essonne, to train even more efficient systems, in just a few months’ time,” Mensch declared, in an interview with TF1.

It’s considered to be a response by the EU, to counter the Stargate Project by the U.S.-based companies, OpenAI and SoftBank.

One of France’s unique advantages in AI infrastructure development is its abundant and carbon-free nuclear energy supply. AI training is energy-intensive, and with companies worldwide searching for sustainable power sources for their data centers, France presents itself as an ideal location.

On Monday, the French government announced plans to dedicate one gigawatt of nuclear power to AI training by the end of 2026. Macron emphasized that France’s power grid is one of the most stable, secure, and decarbonized in the world.

“In France, we have an extraordinary lead. We produce some of the most decarbonized, controllable, and safe electricity in the world. We have the safest and most stable grid. And we export this low-carbon electricity,” Macron explained.

According to Macron, France exported 90 terawatt-hours (TWh) of electricity to neighboring countries in 2024, demonstrating surplus capacity that can be redirected toward AI development.

France’s €109 billion AI investment plan represents a defining moment for the country’s technological landscape. By attracting foreign investment, developing AI-specific infrastructure, and leveraging nuclear power, Macron aims to establish France as a key player in the global AI race.

With major corporations, startups, and foreign investors aligning with this vision, France is poised to compete with AI powerhouses like the U.S. and China, reinforcing its status as a leader in European technological innovation.