The Dutch government announced on Thursday that it is engaged in talks with U.S. chip manufacturers Nvidia and AMD regarding the provision of hardware and technological expertise for a potential artificial intelligence (AI) facility.

The Netherlands intends to establish a facility that would house an AI supercomputer to enhance research and development efforts, aligning with broader EU initiatives aimed at bolstering Europe's digital economy, as stated in an official release.

Last year, the Dutch government allocated 204.5 million euros (approximately $210 million) for AI investments and plans to leverage European subsidies as well.

Economy Minister Dirk Beljaarts indicated that the likelihood of successfully launching the project has improved due to these discussions, although he did not disclose specific details.

"Competition is fierce, the whole world is after this technology," the minister said after a meeting with Nvidia in Silicon Valley.

"This deal brings building a Dutch AI facility a lot closer."