Likewise, Deutsche Telekom has teamed up with Nvidia to build an “AI factory” in Munich. This partnership intends to enhance computing power for AI throughout Germany. Their joint development effort is named the “Industrial AI Cloud.” Valued at €1 billion (around $1.15 billion), it’s designed to position Germany to keep up with growing international demand for AI inferencing and services among German industry.
Their “Industrial AI Cloud” will utilize more than 1,000 Nvidia DGX B200 systems. It’ll leverage RTX Pro Servers, each server outfitted with as much as 10,000 Blackwell GPUs. Despite its age, this impressive infrastructure aims to augment Germany’s AI computing power by 50%. In doing so, it addresses the increasing use of artificial intelligence in many public and private sectors.
Deutsche Telekom rounded out the day Tuesday by officially signing its partnership agreement. The project fits into larger trends across Europe to reduce dependence on foreign technology and service providers. You can bet the fervent European tech sector is all in favor of encouraging adoption of homegrown alternatives. This new initiative is a real step forward in that direction.
In his remarks regarding the partnership, Tim Höttges, CEO of Deutsche Telekom, highlighted the importance of mechanical engineering and industry in shaping Germany’s economic strength. He stated,
“Mechanical engineering and industry have made this country strong.” – Tim Höttges, CEO of Deutsche Telekom.
Höttges said that the rapid rollout of AI technology represents an “opportunity of the century” for German businesses to get ahead. He noted,
“But here, too, we are challenged. AI is a huge opportunity. It will help to improve our products and strengthen our European strengths.” – Tim Höttges, CEO of Deutsche Telekom.
The planned “Industrial AI Cloud” will operate under German data sovereignty legislation. This will help ensure sensitive data remains under national jurisdiction while we provide the most robust AI services. Meeting this compliance is ever more important as the private sector looks for secure environments to support businesses across their data and analytics based operations.
Munich’s “AI factory” will mostly profit specific companies by large measure. Finally, it will accelerate the broad-based expansion of the entire European tech ecosystem. Together, the collaboration seeks to foster greater local innovation and reduce dependence on outside resources. This strategy will reinforce Germany’s position as the spearhead of European technological progress.