Germany is reportedly seeking to intensify its focus on AI, aiming to bolster its economy and enhance its competitiveness in global technological arenas.

According to a Reuters report, a draft strategy from the German research ministry has outlined a vision to generate 10% of the nation’s economic output from AI by 2030. The draft also proposed making AI as a pivotal tool in key research sectors.

The strategy does not specify the existing contribution of AI to Germany’s economy.

The German cabinet is anticipated to approve this strategy by the month’s end.

The document outlined plans to seek bids for building high-capacity processing centres in the EU, aiming for them to be operational by 2027. The German government intends to coordinate these efforts with industry, experts, and federal states by the end of the year.

Notably, the European Commission has earmarked €20bn ($23.24bn) in funding to construct AI ‘gigafactories’ across the EU. Under a recent coalition agreement, Germany aims to house at least one such centre, with companies such as Deutsche Telekom showing interest.

Additionally, the strategy includes objectives to advance quantum computing technology, targeting the creation of two ‘error-corrected quantum computers’ by 2030. This initiative also involves launching Germany’s first research satellite for quantum communication within the year.

Although Germany has achieved early innovation successes, the strategy acknowledges a lag in AI commercialisation.

The Organisation for Economic Co-operation and Development report from 2024 indicated that AI could address several critical challenges for Germany, such as the green transition and improvements in administrative, industrial, and healthcare efficiency.

Recently, Oracle announced a $2bn investment over the next five years to expand its AI and cloud infrastructure in Germany. The investment will help in boosting AI infrastructure capacity in the Oracle Cloud Frankfurt Region.