Germany Ramps Up AI Research Funding to Match China, US

Quincy Jon, Tech Times 24 August 2023, 11:08 am

Germany aims to considerably expand public financing for artificial intelligence (AI) research to catch up to global giants like China and the US.

The decision was made as Europe's largest economy works to revive its economy in the face of difficulties facing several of its major sectors, including chemicals and cars, in the face of intense competition and rising energy prices, according to Reuters.

Germany's goal of roughly tripling public financing for AI research to nearly a billion euros over the next two years was declared by Bettina Stark-Watzinger, the minister of research. Even if this sum may seem minor compared to the $3.3 billion the American government will spend on AI research in 2022, it marks a significant advancement for Germany's AI aspirations.

Germany's Strategy

The strategy calls for building 150 new university laboratories for AI research, expanding data centers, and opening up large public data sets to AI-driven insights. Given its particular difficulties, like the predominance of cash transactions and out-of-date technology like fax machines, Germany's goal to improve its AI skills is an impressive undertaking.

The private investment in the US, which was astonishing at $47.4 billion in 2022 and roughly twice Europe's total spending in this area, dwarfs Germany's state financing for AI research. Stark-Watzinger emphasized Europe's unique legal structure, which stresses privacy and personal safety despite this disparity and may draw foreign players to Germany.

The competitive benefit of having AI that is comprehensible, reliable, and transparent was stressed by Stark-Watzinger. She said simplified rules could encourage the nation to invest more in private research.

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German AI startups have seen growth, projected to double in size by 2023, despite the country not having the same number of IT heavyweights as the United States. Stark-Watzinger recognized that Germany still has the ninth-highest percentage of AI startups internationally.

In a statement, the Federal Ministry for Education and Research emphasized the importance of AI as a "key technology" with enormous potential for advancements in science, economic development, competitiveness, and social value, TNW reported. The ministry emphasized the need to safeguard Germany's and Europe's technical leadership in an AI-powered future.

Germany, Europe Ramping Up AI Efforts to Maintain Tech Status

The European Union's pledges align with Germany's increasing investment in AI research. Through the Horizon Europe initiative, the EU has committed $1.08 billion a year towards AI research, with a goal of $21.7 billion in annual investment volume from the private sector and member states.

Given the geopolitical difficulties with countries like China, these measures, unveiled with Germany's AI Action Plan, showed the country's commitment to integrating its academic practices with its security objectives.

Germany's decision to increase financing and make use of its legal framework underscores its strategic effort to compete in the global AI arena. Stanford University's 2023 Artificial Intelligence Index report indicated that worldwide AI expenditure reached $91.9 billion in 2022, per The Messenger.

Germany also suggested more robust AI and chip export limits for China this week, repeating US proposals. The nation has provided ideas for improving the Chinese foreign direct investment evaluation.