🚀 EU Dreams Big: AI Megafactories or Just Hot Air?

🚀 EU Dreams Big: AI Megafactories or Just Hot Air?

☀️ Good Morning from San Francisco,

🏭 The EU wants to flex its AI muscles. Their plan? Five massive computing centers, each packing 100,000 AI processors. That's four times bigger than today's biggest facilities.

🎯 Tech Commissioner Virkkunen unveils the blueprint today. Germany's Jülich facility leads the race for one spot, though the EU's track record raises eyebrows. Their previous tech initiatives - like 5G and Gaia-X cloud - stumbled spectacularly.

⏰ Applications close in June. The clock ticks while global AI powers surge ahead.

Stay curious,

Marcus Schuler 🖋️


EU Plans Five AI Megafactories to Catch Up With Global Leaders

The European Union wants to build five giant AI computing centers. These "gigafactories" would pack more than 100,000 AI processors each - dwarfing today's facilities that typically house 25,000.

EU Tech Commissioner Henna Virkkunen will unveil the plan today. The goal? Transform Europe into a leading AI continent.

These megafactories will handle complex AI training and development. They could power everything from industrial simulations to satellite control systems. The EU also plans to ease AI regulations for smaller companies.

Germany's North Rhine-Westphalia region looks promising for one site. Their Jülich facility might upgrade to gigafactory status. State Premier Hendrik Wüst claims they have "the best conditions to become Europe's leading digital and quantum region."

But the EU's tech plans often fall short. Their 2016 push for 5G coverage missed its targets. The Gaia-X cloud project flopped, with competitor Nextcloud declaring it "dead."

The selection process starts now. Applications close June 20, 2025. Then comes months of review before final decisions drop in late 2025. Construction timelines? That's another story.

Why this matters:

  • History repeats: The EU excels at ambitious tech plans but struggles to deliver. Success here demands speed and serious money
  • These centers could finally give Europe real AI muscle - if they move fast enough to matter

Read on, my dear:


AI Photo of the Day

Credit: midjourney
Prompt:
ultra photo-realistic portrait of two confident, attractive mature women aged 35 to 40 standing on a rocky beach during calm weather, wearing sleek deep-sea exploration exo-suits (one matte white, one matte black), designed with a feminine silhouette, sculpted armored curves, streamlined carbon fiber plating, subtle glowing seams, oxygen tanks and helmet connectors, both looking into the camera with soft, captivating expressions, natural skin texture, soft sunlight, cinematic color grading, Canon 85mm f/1.4 lens, shallow depth of field, realistic surface detailing, no CGI, no rendering

China's Iron Grip: US Can't Shake These Imports

Chinese dominance of US imports runs deeper than iPhones and gaming consoles. The reality? America depends on China for everything from badger hair to electric toasters.

Recent trade data reveals smartphones topped Chinese imports at $41 billion last year. Apple's iPhone leads the pack, with China supplying over 70% of US smartphone imports. But that's just the start of America's China habit.

Look in your kitchen. That electric toaster? 99% chance it's from China. Your closet's wooden hangers? 90% Chinese-made. Even the artificial flowers brightening your living room likely bloomed in a Chinese factory.

Trump's 104% tariffs aim to break this dependence. His goal: bring manufacturing home to America. But decades of integrated supply chains won't untangle easily.

The plot thickens with critical minerals. China controls 80% of scandium and yttrium exports - and just restricted both. More metals could face export bans.

Even small purchases face new hurdles. Trump hiked tariffs on sub-$800 imports to 90%, targeting Chinese marketplaces like Temu and Shein. Postal fees will jump to $150 per item by June.

Why this matters:

  • America's China dependence isn't just about iPhones - it's woven into daily life, from toasters to umbrella
  • Breaking up is expensive: Those 99-cent store bargains? They're about to cost a lot more than 99 cents

Read on, my dear:


AI & Tech News

Reddit integrates Google Gemini to boost AI search answers

Reddit just upgraded its AI search tool with Google's Gemini, aiming to keep users from wandering off to Google for answers. The feature, which launched in beta last December, now summarizes relevant comments and posts - though some users dismiss it as a Grok knockoff while others praise its ability to digest Reddit's endless advice on tasks like rescuing rusty cookware.

Microsoft pulls plug on $1B Ohio data center trio

Microsoft just unplugged its billion-dollar data center dreams in Licking County, Ohio, shelving plans for three massive facilities in New Albany, Heath, and Hebron. While the company claims it will keep the farmland for future development - and graciously allow actual farming to continue - this marks just another entry in Microsoft's growing list of canceled data centers, suggesting its expansion plans might need a reboot.

Google upgrades Gemini's research brain for paying users

Google just gave its Gemini Advanced subscribers access to Deep Research powered by model 2.5 Pro, replacing the previous 2.0 Flash Thinking engine that all users briefly enjoyed last month. While Google claims raters preferred its new research tool "by more than a 2-to-1 margin" over competitors, free users are left wondering if their research assistant needs to go back to school.

Starlink's bid for Canadian Arctic internet subsidies faces fierce opposition from Bell and other local telecoms, with the battle intensifying amid growing anti-US sentiment. While Musk's satellite service already connects 400,000 Canadians at C$140 monthly, several provinces have torn up Starlink contracts in response to US trade tensions - suggesting this fight over northern funding might leave Musk out in the cold.

From runway to fire sale: Fashion platform Lyst's $546M markdown

In a fashion faux pas that would make even outlet shoppers wince, Lyst - once strutting a $700 million valuation - just sold itself to Japanese retailer Zozo for a marked-down price of $154 million. The deal puts an end to Lyst's dreams of an IPO catwalk appearance, though the company did manage to accessorize its announcement with obligatory AI buzzwords about "transforming fashion discovery" - perhaps hoping no one would notice they're wearing last season's valuation.

Anti-fraud AI firm Hawk lands fresh millions to chase US growth

German fintech Hawk just secured $56 million to expand its AI-powered money laundering detection tools, with London's One Peak leading the investment. The Munich-based company, which already helps 80 banks spot financial crime, plans to use the cash to grow in the US market - though it might want to watch its own money trail, having extended its Series B funding three times since 2023.

German watchdog makes Google recalculate its navigation

Google just agreed to unbundle its car-based services in Europe, finally letting automakers pick their preferred digital driver instead of forcing them to ride shotgun with Google's full package. In what might be the least surprising plot twist in tech regulation, the company insists its platforms have always offered choice - though it took Germany's antitrust authority to help Google find the turn signal.


AI Decoded 🔓: Cool Tools

Your guide to mastering AI tools - no tech degree required.

Five AI Tools You Never Knew You Needed

AI tools multiply like rabbits these days. But some gems hide in plain sight. Let's unearth five powerhouses that dodge the spotlight.

  1. RunwayML
    • Creative suite for video and image editing.
    • Ideal for artists and content creators.
  2. Crystal Knows
    • Provides personality insights based on online behavior.
    • Useful for personalized communication strategies.
  3. Frase
    • Helps in researching and optimizing SEO content.
    • Great for improving website content and rankings.
  4. Descript
    • Comprehensive audio and video editing tool with transcription features.
    • Perfect for podcasters and video editors.
  5. Lobe
    • User-friendly platform for building and training custom machine learning models.
    • No coding required, making it accessible for beginners.

🧐 These tools pack a punch. They'll supercharge your workflow and unlock new possibilities. Take them for a spin - your future self will thank you.


Google overhauls Workspace with AI tools and audio features

Google just revealed major updates to its Workspace suite, headlined by a new AI automation tool and audio features in Docs. The announcements at Cloud Next 2025 show Google pushing AI deeper into its core office products.

Workspace Flows leads the charge. This new tool helps automate complex tasks using custom versions of Gemini called Gems. Users describe what they need in plain language, and Flows builds the automation - no coding required. Early examples show it handling customer support requests by reviewing forms, researching solutions, and drafting replies for human review.

Google Docs gets audio capabilities that let users create podcast-style summaries and full audio versions of documents. A new "Help me refine" feature acts as a writing coach, suggesting ways to strengthen arguments and improve structure.

Sheets users will soon get "Help me analyze" - an AI assistant that creates charts, spots trends, and suggests next steps. Meanwhile, Meet and Chat are getting Gemini-powered features for note-taking, summaries, and real-time assistance during meetings.

Google Vids joins the AI party with the ability to generate video clips using Veo 2, promising realistic motion in various styles. For privacy-conscious users, Google now lets organizations restrict where Gemini processes their data - keeping it within specific regions like the US or EU.

These updates show Google racing to embed AI throughout its productivity tools, though most features remain in alpha or beta testing.

Why this matters:

  • Google's making AI practical for everyday work by focusing on common tasks like writing, analysis, and meeting notes rather than just flashy demos
  • The emphasis on human review and data privacy suggests Google wants to make AI safe and trustworthy for business use

Read on, my dear:


🚀 AI Profiles: The Companies Defining Tomorrow

Jasper AI

Jasper transforms marketing content creation with AI that writes everything from social posts to full campaigns. Started in 2021 by three Austin entrepreneurs who spotted GPT-3's potential to solve content bottlenecks.

The Founders 🚀

  • Founded by Dave Rogenmoser, Chris Hull, and John Phillip Morgan in January 2021
  • Team of experienced entrepreneurs who previously launched multiple startups
  • Created after gaining early access to OpenAI's GPT-3 model
  • Based in Austin, Texas
  • Employee count not specified, but scaled rapidly from founding

The Product 💻

  • AI writing assistant for marketing content and copy
  • Strengths: templates for different content types, brand voice customization, image generation
  • Produces blog posts, ads, social media updates, and product descriptions
  • Features chat interface and browser extension for writing anywhere on the web
  • Jasper Art creates custom images from text prompts
  • Integrates with marketing tools and offers team collaboration features

The Competition 🥊

  • Main rivals: Copy.ai, Writesonic, ChatGPT, Microsoft Copilot, Google Bard
  • Differentiated through marketing focus and enterprise features
  • Created strong position as first-mover in AI copywriting space
  • Faces increasing pressure from free AI tools and big tech integration
  • Shifting toward business-focused features to combat commoditization

Financing 💰

  • Raised $125 million Series A at $1.5 billion valuation in October 2022
  • Led by Insight Partners with participation from Coatue, Bessemer, and others
  • Initially bootstrapped, reaching $40M annual recurring revenue before funding
  • Acquired grammar tool Outwrite to expand capabilities
  • One of the fastest companies to reach unicorn status ($1B+ valuation)

The Future ⭐⭐⭐⭐

Jasper's shift to enterprise under new CEO Timothy Young positions it well against free AI tools. The company's marketing focus and customization features create stickiness despite competition. Its model-agnostic approach lets it adapt to new AI breakthroughs, while its healthy funding provides runway for growth. Becoming an end-to-end marketing platform rather than just a writing tool is its clear path forward. 📈

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