Nvidia and Deutsche Telekom announced a significant partnership worth €1 billion ($1.15 billion) to establish an “AI factory” in Munich, a move aimed at enhancing Germany’s AI computing capabilities by 50%. This initiative, dubbed the “Industrial AI Cloud,” will feature more than 1,000 Nvidia DGX B200 systems and RTX Pro Servers equipped with up to 10,000 Blackwell GPUs, designed to offer AI inferencing and other services while adhering to German data sovereignty laws.
Key elements of the project include collaborations with initial partners such as Agile Robots, which will implement automated solutions for server rack installations, and Perplexity, utilizing the data center to deliver localized AI services for German businesses. Deutsche Telekom is responsible for the physical infrastructure, while SAP will contribute its Business Technology platform and applications.
This strategic alliance emerges amid a growing call from the European tech community for reduced dependence on external infrastructure and services, advocating for the development of local alternatives. Additionally, there has been criticism regarding the EU’s regulatory stance on AI, which some believe hampers innovation. Earlier this year, the European Union committed €200 billion to establish “AI gigafactories” across the continent, focusing on critical industrial applications. However, funding for AI projects in Europe still lags behind the substantial investments seen in the U.S., where companies like Nvidia, Microsoft, Google, and Oracle have committed massive resources for AI infrastructure.
Scheduled to commence operations in early 2026, the Munich facility represents a distinct effort apart from the EU’s gigafactory program. Deutsche Telekom’s CEO, Tim Höttges, emphasized the importance of AI for improving product offerings and reinforcing Europe’s industrial strengths, stating, “AI is a huge opportunity. It will help to improve our products and strengthen our European strengths.”
Key Points:
– Nvidia and Deutsche Telekom’s €1 billion partnership to boost Germany’s AI computing power.
– Introduction of the “Industrial AI Cloud” using advanced Nvidia systems and GPUs.
– Initial collaborations with Agile Robots and Perplexity for localized AI services.
– Project set to begin operations in early 2026, separate from the EU’s AI initiatives.
– Emphasis on developing local tech capabilities amid EU regulatory challenges.
