SoftBank invests 75 billion euros in French AI data centers and European computing power

SoftBank is injecting up to 75 billion euros into the construction of European AI data centers, with a significant portion destined for France. The Japanese tech investor announced its largest European AI funding round to date on Saturday, aiming for the first of these massive computing facilities to be operational by 2031. The focus will be on artificial intelligence for industrial applications, not chatbots.

SoftBank CEO Masayoshi Son dismissed concerns about an "AI bubble," stating his sensitivity to French President Emmanuel Macron's persuasive efforts. Macron's ambition is to position France as a leader in AI applications, thereby lessening Europe's reliance on American technology. The planned data centers will have a total capacity of 5 gigawatts (GW), with an initial phase requiring 3.1 GW and an investment of 45 billion euros. Further expansion is planned elsewhere in France.

While American companies currently lead in developing and training AI models, followed by Chinese competitors, this investment offers Europe a chance to build its own independent AI infrastructure. The need for additional data centers to process AI tasks, known as "inference," is growing as AI adoption expands across businesses. This capital injection from SoftBank appears well-timed to support this transition.