Germany is launching a €125 million competition to build Europe's own frontier artificial intelligence labs, aiming to reduce dependence on American and Chinese AI giants.
The initiative by Germany’s federal innovation agency SPRIND, called “Next Frontier AI,” will fund companies over 24 months in three stages: up to ten teams receive €3 million each initially, then up to six get €8 million, and finally up to three teams can receive €15.5 million each.
“We have no time to waste,” said Jano Costard, SPRIND’s head of challenges.
Most leading AI firms, including OpenAI and Anthropic, are based in the US. China’s DeepSeek released its V4 model in April, intensifying pressure on Europe.
While €125 million is a fraction of what rivals invest, Costard says it’s just the first step to “unlock billions” from private investors. Europe must focus on developing entirely new AI paradigms rather than competing head-to-head with today’s leaders.
The initiative also highlights the need for smoother public funding and a more borderless startup environment across Europe.