Challenge-Driven GenAI4EU Booster in Apply AI prioritised sectors (RIA) (AI/Data/Robotics Partnership)

This summary outlines the EU funding opportunity titled "Challenge-Driven GenAI4EU Booster in Apply AI prioritised sectors," designated as HORIZON-CL4. The opportunity is set to open on January 15, 2026, with a submission deadline of April 15, 2026. It is a Research and Innovation Action (RIA) under Horizon Europe, with an earmarked budget of €45,000,000 intended to fund approximately three grants of about €15,000,000 each. This initiative aims to stimulate the development and adoption of Generative AI (GenAI) solutions in three critical sectors: aerospace, pharmaceuticals and drug development, and telecommunications. Proposals must focus on one of these sectors and are structured as a multi-stage competition. The program encourages collaboration among user industry companies, SMEs, research organizations, and public bodies, with an emphasis on consortia where the lead organization must be an SME. The competition consists of three stages: Stage 1 involves an open call for proposals where 20 teams are selected for Stage 2, with each receiving a €250,000 Financial Support to Third Parties (FSTP) grant. Stage 2 narrows this down to four finalists who will each receive €2,000,000 in Stage 3, which culminates in a grand finale to identify the best solution based on a consortium evaluation. Eligible participants must be legal entities established in EU Member States, along with Norway, Iceland, Canada, Israel, the Republic of Korea, New Zealand, Switzerland, and the United Kingdom, while entities established in China are explicitly excluded to protect EU technological interests. Overall, this funding seeks to drive technological advancement in GenAI, enhance the visibility of the European AI community, and increase the competitiveness of industries by providing substantial financial backing for innovative projects. The selected projects are expected to demonstrate their capabilities through practical applications and collaborations, contributing towards a cohesive and future-proof European industrial ecosystem.

This EU funding opportunity, HORIZON-CL4, aims to boost Europe’s developer community and the adoption of powerful trustworthy generative AI (GenAI) solutions in the strategic sectors of aerospace, pharma/drugs, and telecommunication networks. It is a Research and Innovation Action (RIA) under the Horizon Europe (HORIZON) program, specifically the DIGITAL (HORIZON-CL4-2026-04) call. The planned opening date is January 15, 2026, and the deadline for submission is April 15, 2026, at 17:00:00 Brussels time. The total budget for this topic is €45,000,000, and it is expected to fund approximately 3 grants, each around €15,000,000.

The scope of this opportunity is to foster the development and adoption of Generative AI solutions within three key sectors: aerospace, pharma/drug development, and telecommunication networks. Proposals must focus exclusively on one of these sectors. The initiative is structured as a multi-stage competition, designed to challenge and advance the capabilities of GenAI solutions.

The expected outcomes of this funding include:

Significant technology progress and innovation in aerospace, pharma/drug development, or telecommunication networks through a challenge-driven approach.

Increased competitiveness and visibility of the European Generative AI community.

Increased adoption of Generative AI in the targeted sectors through tangible progress and achievements demonstrated via the challenge-driven process.

The multi-stage competition is structured as follows:

Stage 1:Open Call. A consortium launches an open call for proposals. This challenge is open to all and will select the 20 highest-ranked proposals for Stage 2, based on predefined selection criteria. Solutions can be submitted by single SMEs developing GenAI solutions or by small teams of organizations led by such an SME.

Stage 2:Competition Among Stage 1 Winners. The 20 selected teams or organizations each receive a €250,000 Financial Support to Third Parties (FSTP) grant. They will compete based on their proposals, addressing tasks and challenges defined by the consortium. At the end of Stage 2, the 4 highest-ranked solutions will be selected for the next stage, based on a predefined selection process and criteria.

Stage 3:Grand Finale. The 4 teams or organizations selected from Stage 2 each receive €2,000,000 FSTP grants. They will further develop their solutions and prepare for a grand finale to identify the best-performing solution, based on the consortium's evaluation methodology.

The consortium is expected to define measures to support the winners in maximizing the impact and uptake of their solutions. This could include opportunities for partnerships or contracts with user industries leading the consortium, as well as measures to support the broad adoption of solutions across the sector.

Selected projects are expected to collaborate to share best practices, define challenge processes, ensure efficient monitoring, and organize dissemination and communication activities. This collaboration will be formalized through a collaboration agreement.

The proposal should define a clear methodology for implementing the various steps, including specifications for the competition stages, timelines, targets, KPIs, and a solid evaluation methodology. The beneficiaries will be responsible for implementing the evaluation methodology and providing the necessary infrastructure and technical support for the challenge participants.

Eligible countries for participation are limited to legal entities established in Member States, Iceland, Norway, Canada, Israel, Republic of Korea, New Zealand, Switzerland, and the United Kingdom. There are also restrictions on entities controlled by non-eligible countries. Legal entities established in China are not eligible to participate in Research and Innovation Actions (RIAs) and Innovation Actions (IAs) falling under this destination.

The maximum amount to be granted to each third party is €2,250,000.

The call implements the co-programmed European Partnership on AI, data and robotics (ADRA), and proposals are expected to allocate tasks for cohesion activities with ADRA and the CSA HORIZON-CL4-2025-03-HUMAN-18: GenAI4EU central Hub. Proposals should also build on or seek collaboration with relevant projects and develop synergies with other relevant International, European, national or regional initiatives. Projects selected in this topic will link to the resources offered by the AI Factories, including the Data Labs. The results may be validated in the Testing and Experiment Facilities and further deployed via the European Digital Innovation Hubs (EDIHs) and will contribute to the Apply AI strategy.

This funding opportunity seeks to leverage the transformative potential of Generative AI by fostering innovation and competition among European developers. By focusing on key strategic sectors and providing substantial financial support, the EU aims to accelerate the development and adoption of trustworthy GenAI solutions, enhancing the competitiveness of European industries and strengthening its position in the global AI landscape. The multi-stage competition format is designed to identify and nurture the most promising GenAI solutions, ensuring their impact and uptake across the aerospace, pharma/drug development, and telecommunication sectors.

Eligible Applicant Types:The eligible applicant types for this opportunity are user industry companies, SMEs, research organizations, and public bodies including secondary or higher education establishments. Specifically, the coordinator of a small team of legal entities receiving financial support must be an SME.

Funding Type:The funding type is primarily a grant, specifically a HORIZON Research and Innovation Action (HORIZON-RIA) and HORIZON Innovation Action (HORIZON-IA), with financial support to third parties (FSTP) in the form of grants.

Consortium Requirement:A consortium of multiple applicants is required. User industry companies from the strategic sector targeted by the proposal should be core partners in the consortium.

Beneficiary Scope (Geographic Eligibility):The geographic eligibility is limited to legal entities established in Member States, Iceland, Norway, Canada, Israel, Republic of Korea, New Zealand, Switzerland, and the United Kingdom. Entities established in third countries which may become associated to Horizon Europe during 2026 and 2027 may also be eligible. Restrictions apply to entities controlled by non-eligible countries.

Target Sector:The program targets the following sectors: aerospace, pharma/drug development, and telecommunication networks. It focuses on the application and advancement of Generative AI (GenAI) within these sectors.

Mentioned Countries:Iceland, Norway, Canada, Israel, Republic of Korea, New Zealand, Switzerland, and the United Kingdom. China is mentioned as a country whose legal entities are not eligible to participate in Research and Innovation Actions (RIAs) and Innovation Actions (IAs) falling under this destination.

Project Stage:The project stage encompasses research, development, and validation, with an emphasis on pre-competitive results and a clear path towards exploitation. The program supports projects from the definition stage through multi-stage competitions, aiming to develop and demonstrate powerful, trustworthy generative AI solutions.

Funding Amount:The funding is variable. For each proposal, €5,000,000 is foreseen to be distributed among the winners of Stage 1, and €8,000,000 among the winners of Stage 2, in the form of FSTP grants. The maximum amount to be granted to each third party is €2,250,000. In Stage 2, each of the 20 teams or organizations selected from Stage 1 receive €250,000. In Stage 3, each of the 4 teams or organizations selected from Stage 2 receive €2,000,000.

Application Type:The application type is an open call for proposals, followed by a multi-stage competition.

Nature of Support:Beneficiaries receive money in the form of grants, specifically FSTP grants, to support third parties participating in the challenges.

Application Stages:The application process involves three main stages:

Stage 1:Open call for proposals, selecting the 20 highest-ranked proposals.

Stage 2:Competition among the 20 Stage 1 winners, each receiving €250,000 FSTP, selecting the 4 highest-ranked solutions.

Stage 3:Grand finale competition among the 4 Stage 2 winners, each receiving €2,000,000 FSTP, to identify the best-performing solution.

Success Rates:The success rates are not explicitly mentioned, but the program aims to select 20 proposals for Stage 2 and then narrow down to 4 for Stage 3, suggesting a competitive selection process.

Co-funding Requirement:Co-funding is not explicitly mentioned as a requirement for the initial proposal. However, the proposers are encouraged to seek sponsorship, which would be key for the visibility and prestige of their challenge, and to attract the best developers from the eligible countries to compete, particularly SMEs, alone or within a team competing for the challenges.

Summary:This Horizon Europe call, "Challenge-Driven GenAI4EU Booster in Apply AI prioritised sectors (RIA) (AI/Data/Robotics Partnership)", aims to stimulate the European Generative AI ecosystem by funding consortia that will define and organize multi-stage competitions. These competitions will challenge SMEs and small teams to develop innovative and trustworthy GenAI solutions for the aerospace, pharma/drug development, and telecommunications sectors. The selected consortia will receive funding to support the challenge participants through financial support to third parties (FSTP), technical assistance, and business support. The ultimate goal is to drive technological progress, increase the competitiveness of European AI, and promote the adoption of GenAI in key strategic sectors, fostering a cohesive, sovereign, and future-proof European industrial base. The call emphasizes collaboration, knowledge sharing, and the reuse of existing resources within the European AI, Data, and Robotics community.