(Federal Minister for Digitalisation and Modernisation of Public Administration / Deutsche Telekom)
The U.S.-based Nvidia is vigorously directing its monetary resources, enhancing its status as a key player reaping the benefits of the AI surge. On November 4th, they finalized a €1 billion agreement with Deutsche Telekom to establish an “AI factory” in Munich, which is anticipated to elevate Germany’s computational capabilities in the realm of artificial intelligence by half.
This is according to Delo.ua , referencing a report from TechCrunch.
The initiative, known as the Industrial AI Cloud, will utilize more than 1,000 Nvidia DGX B200 systems coupled with RTX Pro servers, featuring a total of up to 10,000 Blackwell GPUs. The data hub’s capacity will equip German firms with AI reasoning and other computational utilities, while adhering completely to national regulations regarding digital data governance.
Deutsche Telekom stated that the early collaborators of the project include Agile Robots, whose robotic systems will facilitate the installation of server configurations, and Perplexity, which intends to leverage the data hub to deliver localized AI solutions to clientele and enterprises within Germany. Significant applications also encompass digital replicas and physics-driven simulations for industrial establishments.
Deutsche Telekom will contribute the physical architecture, while SAP is slated to provide the business platform accompanied by relevant applications.
This alliance materializes amidst appeals from the European tech sphere for EU bodies to lessen reliance on overseas infrastructure suppliers and foster the advancement of indigenous substitutes. Simultaneously, tech firms have voiced concerns regarding the EU’s strategy for AI governance, suggesting that excessive regulations impede groundbreaking ideas.
“Engineering and the industrial sector have solidified this country’s strength. Nevertheless, we are also confronted with difficulties. Artificial intelligence presents an immense prospect. It will contribute to the refinement of our offerings and bolster European strong points,” commented Deutsche Telekom CEO Tim Göttges.
Earlier in the year, the EU revealed a €200 billion investment towards the creation of “AI gigafactories” within Europe, with an emphasis on industrial and vitally important implementations. However, the financial commitment for AI endeavors in the EU remains substantially lower than that in the US, where leading entities like Nvidia, Microsoft, Google, and Oracle have already dedicated hundreds of billions of dollars to constructing expansive data hubs and affiliated infrastructure to cultivate AI models and services.
Deutsche Telekom underscored that this undertaking, slated for commencement in early 2026, exists independently from the EU’s AI Gigafactories program.
