Luxembourg: A Secure, Accessible AI and Supercomputing Hub
The 2024 Stanford AI Index recently ranked Israel first worldwide for AI talent concentration. According to the same report, Luxembourg ranks second for the highest number of AI patents per 100,000 inhabitants. This is due to the country’s substantial investments in high-performance computers, allowing it to dedicate significant computing power to AI. Luxembourg is opening the doors of its supercomputer, MeluXina, to companies interested in expanding into Europe
Israel is a leading player in artificial intelligence (AI), with AI startups accounting for 30% of all tech startups, one of the highest densities in the world. Many multinationals, such as NVIDIA, have been steadily investing in AI R&D in the country, as has the government through the Israel National AI Program.
These efforts are now paying off, as Israel currently boasts the world’s highest concentration of AI talent, according to the 2024 Stanford AI Index. Today, the country is home to over 2,000 AI-driven companies, which largely focus on applied AI – a type of AI dedicated to solving challenges and driving business value. As these companies grow and seek foreign markets for expansion, they can turn to Luxembourg as the ideal launch pad to enter the European market.
In addition to its supercomputer MeluXina, an 18-petaflop HPC opened in 2021, the country has recently launched the Luxembourg AI Factory, one of seven connected HPC facilities in Europe. This initiative is intended to create a robust and interconnected network of AI hubs, acting as a one-stop-shop for SMEs and researchers. Both MeluXina and the AI Factory, which will feature a second AI-dedicated supercomputer, are coordinated by LuxProvide, and offer substantial computing power to businesses. In Luxembourg, access to the supercomputers is not tied to research partnerships, as is often the case elsewhere. Dedicated experts provide hands-on to help companies prepare their HPC projects and use the supercomputer.
To further facilitate company access, LuxProvide has launched the “Initiate” and “Cashback 80%” programs. “Initiate”, designed specifically for international startups across the world, aims to enable companies to validate their ideas and reach the prototype phase without any financial burden or other operational constraints that come with managing smaller teams for HPC projects. “We offer startups supercomputing resources, data science, quantum and AI expertise, mentorship, and sector-specific insights,” says Filipe Pais, Chief Customer Success Officer at LuxProvide.
Once they reach a higher level of maturity, the “Cashback 80%” program offers Luxembourg-based businesses a significant financial incentive: a rebate of 80% on HPC usage and related services. “Our mission is clear: to democratize AI adoption and empower emerging businesses to transform ideas into scalable solutions, driving Luxembourg’s and the global AI ecosystem forward,” he adds. In addition, Luxembourg is developing MeluXina-Q, a powerful quantum computer that will enhance its offering for companies.
HPC and AI in Luxembourg: the value for Israeli companies
Luxembourg also has the highest incoming migration of AI talent, according to the 2024 Stanford Index. This is no coincidence; for decades, the country has purposefully invested in tech infrastructure to grow its IT sector. It now hosts major players like Google, which recently opened an AI Center of Excellence at the University of Luxembourg, alongside multinationals like Microsoft and Paypal.
In fact, Luxembourg has been building a marketplace that combines robust data protection with access to world-class technologies, creating a springboard for business in the thriving European market. The country’s objective is to put in place a fully integrated data value chain. Data-driven innovation is encouraged, and foreign businesses find fertile ground to enter the European market.
The MeluXina supercomputers - operated by LuxProvide under the governance of the Luxembourg Ministry of the Economy and Ministry of State - are hosted in Luxembourg data centers, enabling data sovereignty and compliance with Luxembourg and European regulations on data security and privacy, which are among the strongest in the world.
Being in Europe also means being supported by the EU AI Act – the world’s first comprehensive regulatory framework for AI. The AI Act provides guidance and protection to companies and promotes trustworthy and responsible AI. It also guides the European Commission in the implementation of its strategy for boosting research and innovation in the field of AI.
Advantages of living and working in Luxembourg
Beyond its infrastructure and supporting ecosystem, another reason for Luxembourg’s significant incoming migration of AI talent is its quality of life. Nestled in the heart of Europe and boasting strong ties with neighboring countries Germany and France, as well as serving as one of the EU capitals, the country is strategically located for businesses looking to expand into European markets.
Luxembourg has a distinct international character, with English frequently used as a business language. Approximately 50% of the country’s population consists of foreigners, a percentage that rises to 70% in the country’s capital, Luxembourg City. This multicultural makeup fosters integration and inclusion, allowing residents to organically build international networks.
The country’s size is also its strength, enabling companies to quickly access decision-makers, support, and business partners. In addition, several local funding instruments facilitate public-private partnerships with research centers, such as the Partnership Programme at the Interdisciplinary Centre for Security, Reliability and Trust at the University of Luxembourg (SnT).
For Israeli firms eyeing European growth, Luxembourg presents a strategic advantage. Companies can gain a distinct competitive edge by tapping into its world-class AI talent pool and accessing multiple supercomputers. This can be achieved while benefiting from the protection of Europe’s security and privacy laws, as well as Luxembourg’s commitment to data sovereignty.
Moreover, businesses incorporating in Luxembourg can rely on personalized advice and various funding instruments, receiving the support they need to thrive. With its high-performance computing offering, international character, and welcoming environment for foreign businesses, Luxembourg could be the ideal next step for your company’s growth.
If you want to learn about Luxembourg as your launch pad to Europe and our tailor-made support, please feel free to contact the Luxembourg Trade & Investment Office in Tel Aviv for further information.
