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Nvidia is playing fast and loose with its war chest as it looks to build its momentum as a major benefactor of the AI boom.
Organization on Tuesday signed A €1 billion ($1.15 billion) partnership with Deutsche Telekom to set up an “AI factory” in Munich that aims to boost Germany’s AI computing power by 50%.
Dubbed the “Industrial AI Cloud,” the project will use more than 1,000 Nvidia DGX B200 systems and RTX Pro servers with up to 10,000 Blackwell GPUs to provide AI inference and other services to German companies in compliance with German data sovereignty laws.
Deutsche Telekom said initial partners in the project include Agile Robots, whose bots will be used to install server racks at the facility, and Perplexity, which will use the data center to provide AI inference “in country” to German users and companies. Also outlines digital twins and physics-based simulations for use by telco industrial companies.
The telecom company said it will provide the physical infrastructure for the project, while SAP will provide its business technology platform and applications.
The partnership comes at a time when the European tech industry has been Calling on EU lawmakers To reduce their dependence on foreign infrastructure and service providers and encourage the adoption of indigenous alternatives. At the same time, the tech companies have also been Criticizing Block’s approach to AI controlArguing that regulations only stifle innovation.
Earlier this year the EU Committed €200 billion To set up “AI gigafactories” on the continent, focused on “industrial and mission-critical applications”. But funding for AI initiatives in the European Union has been significantly lower than in the US, where companies such as Nvidia, Microsoft, Google and Oracle have pumped hundreds of billions into building massive data centers and infrastructure to support the development of AI models and services.
Deutsche Telekom noted that the project, expected to begin operations in early 2026, is separate from the EU’s AI Gigafactory initiative.
“Mechanical engineering and industry have made this country strong,” said Deutsche Telekom CEO Tim Hotges. “But here, too, we are challenged. AI is a huge opportunity. It will help us improve our products and strengthen our European strength.”
