Deutsche Telekom and Nvidia are joining forces to build Europe’s first industrial AI cloud, a major project set to launch in Germany by 2026. Nvidia will supply 10,000 high-powered chips, while Deutsche Telekom will provide the cloud infrastructure, security, and services needed to run the platform. This AI cloud will support manufacturers and researchers, offering the tools to integrate advanced technologies like robotics, simulation, and digital twins into industrial operations.
The partnership comes at a time when Germany is pushing hard to modernise its manufacturing base and reduce reliance on foreign tech providers. German Chancellor Friedrich Merz has endorsed the deal, calling it vital for Germany’s digital independence and long-term economic strength. This national effort aligns closely with the European Union’s broader strategy to develop homegrown artificial Intelligence (AI) capabilities and catch up with global leaders like the United States and China.
To support this transition, the German government is planning to deploy up to 100,000 GPUs, with a subsidy covering 35 percent of the cost. The remaining investment is expected to come from private industry. Meanwhile, the European Commission has announced a 20 billion dollar fund to help member states develop similar AI infrastructure, aiming to boost innovation and competitiveness across the region.
The announcement followed Nvidia CEO Jensen Huang’s presentation in Paris, where he outlined the company’s commitment to Europe. Days later, he met with Chancellor Merz in Berlin, highlighting the significance of this partnership not just for Germany but for the future of European AI development. It reflects a broader shift toward building AI ecosystems that serve both sovereign interests and global technology goals.
Once operational, this AI cloud will provide a critical foundation for digital transformation across sectors. It is expected to help small and medium enterprises, as well as large manufacturers, apply artificial intelligence in practical and efficient ways. For Europe, it marks a key step toward technological self-reliance in a rapidly evolving AI landscape.
