Nicosia, Cyprus. State Aid Control Commissioner Stella Michaelidou has ruled that the grant scheme financing the operation of the Cyprus AI Factory Antenna Pharos-CY is compatible with European Union state aid rules.
The decision, issued on July 17, 2026, clears the way for implementation of the artificial intelligence initiative following formal notification of the measure.
Scheme implementation
The Deputy Ministry of Research, Innovation and Digital Policy will be responsible for implementing and managing the scheme, according to an announcement issued on Thursday.
Small and medium-sized enterprises will be the main beneficiaries of the aid. Large companies, semi-government organisations and government departments will receive support as de minimis aid or as assistance not considered state aid under European Union law.
Artificial intelligence services
Pharos-CY aims to accelerate the development and adoption of trustworthy artificial intelligence applications in Cyprus, focusing on health, sustainability, culture and language.
The Cyprus AI Factory Antenna will work closely with the Greek AI Factory Pharos and the EuroHPC Joint Undertaking.
The collaboration will provide start-ups, SMEs, public sector bodies and researchers with access to advanced artificial intelligence tools, curated datasets and high-performance computing resources, including the Daedalus supercomputer.
Support for businesses
The initiative will also provide artificial intelligence services, secure data environments and specialised tools tailored to Cyprus’ national requirements.
Support will be offered through free advisory and support services provided by Pharos-CY to businesses, with the aim of strengthening innovation and increasing the use of artificial intelligence in productive economic activity.