Germany’s SPRIND and the Netherlands’ NADI have launched a joint €40 million programme, the AI-Native Chip Design Challenge, aimed at cutting chip development timelines from years to weeks. It is the first joint-funding initiative between the two agencies, running across two stages over 20 months.
What the company does
SPRIND, Germany’s Federal Agency for Breakthrough Innovation, and NADI, the Netherlands’ national innovation agency, are government bodies that fund high-risk technology challenges rather than individual startups. Both follow the ARPA model, the same approach used by the UK’s ARIA since 2022, where a government agency sets a specific technical problem and funds competing teams to solve it, rather than picking winners in advance.
NADI was formally launched on 15 September 2026 by Dutch Economic Affairs Minister Heleen Herbert, backed by a government allocation of €500 million. It was set up following an open letter from Dutch universities, investors and companies including Philips and NXP, and a report from former ASML chief executive Peter Wennink recommending the Dutch government commit €1.5 to 2 billion to its deployment.
The round
The AI-Native Chip Design Challenge is worth €40 million and runs over 20 months in two stages, according to the announcement on EU-Startups. Stage 1 runs from November 2026 to July 2027 and will select seven teams, each receiving €2.6 million. Stage 2 runs for a further year and will shortlist three teams to receive €7 million each, alongside technical and commercial coaching. Further financing details and dates for Stage 1 are still to be confirmed.
The programme aims to expand the use of AI-driven methods in chip design, including AI models and reinforcement-learning agents applied to complex optimisation problems, with the eventual goal of AI systems handling chip design autonomously. It is intended to produce production-ready chip designs for high-performance AI inference and training, improving energy efficiency and scalability, and cutting inference costs.
Jano Costard, Head of Challenges at SPRIND, said: “The launch of NADI’s first programme is a huge statement of Europe’s intent to combine two of the continent’s greatest strengths: collaboration and innovation… We expect to see more nations commit to backing pan-European, radical breakthroughs. The need is great, and the model works.”
SPRIND has supported NADI’s formation and says its Challenges model has deployed more than €100 million across Europe this year, including an earlier joint Challenge with Sweden’s Vinnova.
Frequently asked questions
What is the AI-Native Chip Design Challenge?
It is a €40 million programme launched jointly by Germany’s SPRIND and the Netherlands’ NADI to fund teams developing AI-driven methods for chip design, with the aim of cutting development timelines from years to weeks.
Who is funding the AI-Native Chip Design Challenge?
The challenge is funded by SPRIND, Germany’s Federal Agency for Breakthrough Innovation, and NADI, the Netherlands’ national innovation agency, in their first joint-funding initiative.
How will the €40 million be allocated?
Stage 1, running to July 2027, selects seven teams at €2.6 million each. Stage 2, over the following year, shortlists three teams to receive €7 million each, plus coaching support.
