EU Unveils Package to Boost AI Start-ups and SMEs

Written by Jeremy Werner

Jeremy is an experienced journalist, skilled communicator, and constant learner with a passion for storytelling and a track record of crafting compelling narratives. He has a diverse background in broadcast journalism, AI, public relations, data science, and social media management.
Posted on 01/30/2024
In News

UPDATE — JULY 2025: The European Commission’s AI ecosystem initiatives—announced in January 2024 to support trustworthy AI start-ups and SMEs—are now actively shaping the regulatory and business landscape across the EU. The EU AI Act entered into force on August 1, 2024, and the first enforcement provisions (including the ban on unacceptable-risk AI) took effect on February 2, 2025.

Therefore, while the AI Office is now operational and coordinating Act implementation, full enforcement and support infrastructure—including AI Factories, supercomputing access, and national regulatory bodies—are still being phased in. Funding through Horizon Europe and Digital Europe is underway, and key initiatives like GenAI4EU, ALT-EDIC, and CitiVERSE are in progress.

Furthermore, these developments mark the EU’s continued leadership in trustworthy, values-aligned AI, though challenges around general-purpose AI enforcement and SME access to resources remain areas of ongoing focus.

ORIGINAL NEWS POST:

How the EU Is Supporting Trustworthy AI Development in 2025

As the EU AI Act moves closer to final passage, the European Commission has unveiled a comprehensive package of initiatives aimed at bolstering AI startups, small, and mid-size enterprises (SMEs) to develop trustworthy AI aligned with EU values and regulations. Announced on January 24, the package reflects the Commission’s commitment to providing European AI startups access to supercomputing resources for AI model training.

 

Key initiatives include:

  • Amendments to the EuroHPC Regulation to establish AI Factories, a component of the EU supercomputing program focused on:
    • Procuring and operating dedicated AI supercomputers for machine learning model training.
    • Facilitating access to these supercomputers for startups, SMEs, and other users.
    • Offering comprehensive support to AI developers with supercomputer access, programming assistance, and AI-enabling services.
    • Enabling emerging AI applications across various sectors such as manufacturing, climate, and virtual environments.
  • Establishment of an AI Office within the Commission to coordinate AI policy, oversee AI Act implementation, and supervise regulations for general-purpose AI systems.
  • Introduction of an EU AI Startup & Innovation Communication outlining significant activities:
    • Allocation of €4 billion in EU funding through 2027 across Horizon Europe and Digital Europe programs.
    • Initiatives to expand the EU’s AI talent pool.
    • Increased public/private investment in AI startups and scale-ups.
    • Accelerated development of EU Common Data Spaces accessible to the AI community.
    • Launch of the GenAI4EU initiative supporting innovative AI use cases across 14 industrial ecosystems.
  • Creation of two European Digital Infrastructure Consortiums (EDICs) in collaboration with Member States:
    • Alliance for Language Technologies (ALT-EDIC) to develop EU language technologies and data resources.
    • CitiVERSE EDIC applying AI to optimize city processes through digital twins.

 

The AI Office

 

Additionally, the Commission adopted a strategy outlining its approach to using trustworthy and ethical AI. Next steps involve the Parliament and Council considering the proposed amendments to the EuroHPC Regulation. The AI Office will be established within the Commission to coordinate AI activities. Meanwhile Member States will set up the ALT-EDIC and CitiVERSE EDICs with Commission support.

 

For insights on how AI regulations around the globe could impact you, consider reaching out to BABL AI. Their team of Audit Experts is equipped to offer valuable insights and address any concerns.

Subscribe to our Newsletter

Keep up with the latest on BABL AI, AI Auditing and
AI Governance News by subscribing to our news letter