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Thursday: Millions for European chip designs, OpenAI with a GitHub alternative

ChipsNovember 5, 20261 min read

The EU is spending 525 million euros to help a new wave of European chip design companies. At the same time, OpenAI is buying Pierre Computer, a start-up that makes software tools, to build its own system for AI-assisted coding.

EU money for chip designers

The European Union will invest 525 million euros to support new European companies that design computer chips. The new chip design platform is a key part of the EU Chips Act. Its goal is to build up Europe's ability to design advanced chips. Member companies will get access to design tools, support services, intellectual property rights (legal rights to ideas and designs), and factories that make chips.

Key facts

The EU will invest 525 million euros.
European chip design firms now earn less than 1% of global chip design revenue, according to the EU.
The goal is to help Europe catch up with the United States and China.

OpenAI buys Pierre Computer

OpenAI plans to buy Pierre Computer, a start-up that offers open-source tools (free programs that anyone can read and change) for software development. Some of these tools are already built into Codex, OpenAI's AI tool that helps write code and automate tasks. With this move, OpenAI is building its own system for AI-assisted coding. This makes it a rival to GitHub, a platform where programmers store and share their code.

Why OpenAI and Microsoft are rivals now

GitHub has belonged to Microsoft since 2018. Microsoft has also invested billions in OpenAI and currently holds about a quarter of the AI company. The two firms are partners, but they also compete in other areas. OpenAI says that the systems around Git, a tool for tracking changes in code, must keep improving.

Why it matters

Chips are needed for almost everything with electronics, so Europe wants to depend less on the US and Asia. In software, control over the tools programmers use can give a company great power. OpenAI's move shows that AI firms want to own more of the coding process, not just the AI models.

Glossary

Codex: OpenAI's AI tool that helps programmers write code and automate software tasks.
GitHub: An online platform where programmers store, share and work together on code. Owned by Microsoft.
Pierre Computer: A start-up that makes open-source software tools for programmers. OpenAI plans to buy it.

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Chip manufacturing: EU invests hundreds of millions in chip design platform

The European Union will invest €525 million to support a new generation of European chip design companies, as announced by Henna Virkkunen at the launch of the European Chip Design Platform. European firms currently generate less than 1% of global chip design revenue, and the platform will offer design tools, support services, IP building blocks, manufacturing access and grants of up to €16 million for advanced start-ups. The initiative is a key part of the EU Chips Act, which aims to strengthen Europe's semiconductor ecosystem and reduce dependence on the US and China.