Germany has announced plans to nearly double its public funding for artificial intelligence (AI) research, allocating almost a billion euros over the next two years. This move is driven by the nation's aspiration to bridge the skills gap in comparison to AI leaders China and the United States. While this funding target is relatively modest compared to the substantial $3.3 billion spent by the U.S. government on AI research in 2022, Germany aims to create 150 new university labs for AI research, expand data centers, and make complex public data sets more accessible for AI-driven insights.

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Despite the substantial private AI spending in the U.S. reaching $47.4 billion in 2022, dwarfing both Europe's total spending and China's $13.4 billion, Germany believes its emerging regulatory framework focused on privacy and personal safety could attract AI players to the country. The government emphasizes its commitment to developing AI that is explainable, trustworthy, and transparent, which it sees as a competitive advantage. The increase in AI startups in Germany, doubling in 2023, though placing the nation in ninth globally, signifies progress in the AI landscape.

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