Portugal and Spain agreed on Saturday (6 March) to submit a joint, equal partnership application for the development of a European Artificial Intelligence (AI) Gigafactory. The project, stemming from the Iberian Summit, involves an investment of €8 billion aimed at enhancing the technological and digital capacity of the Peninsula. This strategic initiative includes the establishment of technological infrastructures in both countries, ensuring a balanced distribution of resources and skills. According to a source from the Portuguese government, this initiative represents the largest joint investment ever made between the two nations, aiming for a 'robust and competitive' application in the demanding global innovation market. The central goal of this partnership is to strengthen the positioning of Portugal and Spain — and, by extension, all of Southern Europe — at the forefront of AI development. With this step, both governments aim to create the necessary conditions to turn the region into a true nerve centre of innovation in Artificial Intelligence, capable of competing with the world's leading technological blocs. The planned gigafactory will not only be a data processing centre but an integrated ecosystem aimed at attracting foreign direct investment and retaining highly skilled talent. The scale of €8 billion reflects the ambition to create physical infrastructure (high-performance computing centres) and logical infrastructure (development of algorithms and language models) with Iberian DNA. Authorities emphasise that the equal nature of the project is crucial to ensure that the benefits of digital transition are felt equitably across both territories, enhancing synergies in areas such as energy — where the Peninsula already holds a competitive advantage in renewables — and international connectivity. The decision to proceed with this AI gigafactory is the culmination of a process of political and economic rapprochement that has characterised these annual meetings in recent years, bringing together heads of government and their respective ministers. Historically, the summits focused on cross-border cooperation, management of shared watersheds, and railway connections. However, more recently, the agenda has been dominated by the 'Common Strategy for Cross-Border Development' and the assertion of the 'Iberian Bloc' in Brussels. The proposed gigafactory fits into the new vision of 'Open Sovereignty' of the European Union, which seeks to reduce dependence on critical technologies from external powers. By choosing AI as the next major common project, Portugal and Spain aim to transition from being mere consumers of technology to becoming producers of critical infrastructure, leveraging the current moment of digital reindustrialisation in Europe.