European Commission President Ursula von der Leyen said artificial intelligence (AI) companies in the European Union would require investments worth €500 billion ($551 billion).

Axar.az reports, citing Dpa International, that the funding is most needed to develop highly advanced AI models and in the areas of chips and other hardware, von der Leyen said on Friday after a discussion with EU leaders in Dublin.

"Europe is creating more tech startups than the US. But many of these startups fail to receive the necessary support to scale them," von der Leyen said.

The EU needed to attract private investments, but also reform its investment rules and agree on innovation funds, von der Leyen said.

The push to expand Europe's AI industry aims to reduce its dependence on US and Chinese technology.

Von der Leyen said she will present an "ambitious proposal" on more
funding for tech sovereignty.