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German and Dutch strategic innovation agencies to collaborate on AI chip design

Published by Global Banking & Finance Review

Posted on September 23, 2026

2 min read

· Last updated: September 23, 2026

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German and Dutch Innovation Agencies Launch AI Chip Design Partnership

European Collaboration to Advance AI Chip Technology

By Toby Sterling

AMSTERDAM/BERLIN, Sept 23 (Reuters) - A new Dutch government agency set up to achieve strategic innovation will work with its German counterpart to pursue breakthroughs in AI computer chip design, it said on Wednesday, as part of European efforts to reduce reliance on US expertise.

Establishment of the National Agency for Disruptive Innovation (NADI)

The National Agency for Disruptive Innovation, or NADI for short, was set up this month with €500 million ($570 million) of government money as a Dutch equivalent of the US Defense Advanced Research Projects Agency.

Background: The DARPA Model

Popularly known as DARPA, that agency was set up in 1958 in response to the Soviet Union's Sputnik launch and played a role in the technologies that led to the internet, stealth aircraft and GPS.

Drawing on ASML Ecosystem

DRAWING ON ASML ECOSYSTEM

Co-founder of NADI, Jelle Prins, said that a partnership with Germany on chips was natural, given the strong ecosystem around equipment maker ASML in the Netherlands, and German strengths in research and manufacturing.

Details of the AI Chip Partnership

In the project, NADI and German counterpart, SPRIND, will commit €40 million over 20 months to groups of small teams using AI to accelerate the design of chips for training and "inference", or running, AI models.

Challenges with Current AI Chips

Prins said NVIDIA chips are powerful but inefficient for inference tasks, comparing them to "doing your shopping with a truck" rather than a grocery cart.

Broader European Innovation Initiatives

In Europe, France established its defence innovation agency AID in 2018, Germany set up SPRIND in 2019 and Britain launched ARIA in 2023. 

French and German Agency Achievements

France's AID backed development of remote-controlled munitions capable of destroying armoured targets at a 50-km (30-mile) distance that are entering procurement by the French military.

SPRIND is separately running a €125 million challenge aimed at creating three European frontier-AI labs.

SPRIND’s Ambitions for AI Chip Design

SPRIND’s head of challenges, Jano Costard, told Reuters the goal with chips was to achieve “several orders of magnitude acceleration” in a design process that currently takes years. 

($1 = 0.8731 euros)

(Reporting by Toby Sterling; editing by Barbara Lewis)

Key Takeaways

  • NADI, launched September 2026 with €500 million, follows the DARPA model (like UK’s ARIA and Germany’s SPRIND) to drive high-risk, high-impact tech breakthroughs, particularly in AI and semiconductors (nadi.nl).
  • The €40 million, 20-month joint chip-design initiative with SPRIND will focus on AI-driven design for both AI training and inference chips, aiming to dramatically accelerate a process that currently takes years (sprind.org).
  • This partnership aligns with broader EU efforts—such as the €5 billion AI megafactory plan and the Chips Act—to bolster Europe’s semiconductor ecosystem and reduce dependencies on U.S. suppliers (lemonde.fr).

References

Frequently Asked Questions

What is the goal of the partnership between NADI and SPRIND?
The goal is to accelerate breakthroughs in AI chip design and reduce Europe's reliance on US expertise.
How much funding are NADI and SPRIND committing to the AI chip project?
They are providing €40 million over 20 months to support small teams innovating in AI chip design.
Why is the ASML ecosystem relevant to this collaboration?
The strong ASML ecosystem in the Netherlands provides advanced chipmaking technology, complementing German research and manufacturing strengths.
What inefficiency in current AI chips does the project aim to address?
The project aims to create chips more efficient for inference tasks, as current NVIDIA chips are powerful but inefficient for this purpose.
How does this initiative fit into broader European innovation efforts?
It is part of a wave of new agencies and projects in Europe aimed at strategic technological independence and innovation.

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