The AI Action Summit, held on February 10-11, 2025, at the Grand Palais in Paris, brought together world leaders, industry executives, academics, and civil society representatives to discuss the future of artificial intelligence. French President Emmanuel Macron and Indian Prime Minister Narendra Modi co-chaired the event, with key discussions focusing on AI’s role in global development, economic impact, and regulatory frameworks. Will the French President’s effort at launching a Europe wide AI effort start a tech war with the US and China?
As part of France’s strategic push into AI, President Macron announced that private sector investments totaling approximately 109 billion euros ($112.5 billion) would be funneled into the country’s AI sector. The investment package includes major contributions from Canadian investment firm Brookfield, which has pledged 20 billion euros for AI projects in France, as well as significant funding from the United Arab Emirates (UAE). The UAE has committed to investing between 30 and 50 billion euros over the coming years to build one of Europe’s largest AI data centers.
The AI data center, expected to become the core of a new AI “campus,” will have up to a gigawatt of capacity, reflecting the immense energy demands of AI technology. The initiative aligns with France’s ambition to establish itself as a leader in AI infrastructure and computing power, competing with major AI hubs in the United States and China. France’s move also seeks to ensure European technological sovereignty by diversifying data center ownership away from dominance by American firms such as Microsoft and Amazon.
Prime Minister Narendra Modi’s presence at the summit underscored India’s growing role in the global AI landscape. He held bilateral talks with President Macron to deepen cooperation in technology, AI research, and digital infrastructure. His visit, part of a broader diplomatic tour, emphasized India’s commitment to AI-driven economic growth and its potential role as a key partner in global AI development.
The summit also featured U.S. Vice President JD Vance, who advocated for a hands-off approach to AI regulation, contrasting with the European preference for more oversight. The presence of global tech leaders, including OpenAI’s Sam Altman and Google CEO Sundar Pichai, reinforced the importance of collaboration between governments and the private sector in shaping the future of AI.
However, France’s AI investment announcement comes at a time of intensifying global competition, particularly between the United States and China. Just weeks before the Paris summit, U.S. President Donald Trump unveiled the “Stargate Project,” an unprecedented $500 billion AI infrastructure plan designed to cement America’s dominance in artificial intelligence. The project, which includes massive investments in AI data centers, chip manufacturing, and supercomputing facilities, is set to roll out over the next four years. Trump called it “the largest AI project in history,” vowing that the U.S. would stay ahead of China and any other competitors in the global AI race.
Meanwhile, China has been making rapid advancements in AI, with its companies such as Baidu, Tencent, and DeepSeek challenging U.S. dominance in AI development. Chinese AI models, including DeepSeek’s latest chatbot, have proven that they can rival U.S.-based counterparts like OpenAI’s ChatGPT while using significantly fewer computing resources. This efficiency could give China an edge in the AI race, particularly as the world grapples with the energy-intensive nature of AI infrastructure.
The growing rivalry between the U.S. and China has raised concerns about an impending “AI arms race,” with both nations pouring billions into AI development and seeking to dominate the next generation of computing. Europe, including France, is now scrambling to keep up, as experts warn that the continent risks being left behind in the global competition. While France’s partnership with the UAE and major private sector investments are a step toward AI competitiveness, some analysts believe Europe must do more to close the gap with the U.S. and China.
Despite the ambitious investments, experts warn that Europe still faces challenges in catching up with AI powerhouses like the U.S. and China. AI infrastructure, particularly large-scale data centers, requires vast energy resources, and Europe may struggle to meet future demand. Additionally, some critics argue that the focus on AI hardware could overshadow efforts to develop more energy-efficient AI models and innovative applications.
The AI Action Summit concluded with a commitment to fostering international partnerships and developing AI policies that balance innovation with ethical considerations. France’s major AI investments, particularly its partnership with the UAE, mark a significant step in positioning the country as a central player in the global AI race. However, with the U.S. and China accelerating their AI programs, the world may be heading toward a full-scale AI war—one that will shape the future of technology, geopolitics, and economic power.
