Key Points
- Nvidia and Deutsche Telekom to build Europe’s first industrial AI cloud
- Project based in Germany, launching by 2026
- Nvidia to supply 10,000 advanced AI chips
- Deutsche Telekom manages infrastructure, data centers, security
- AI cloud targets European manufacturers, startups, academia
- Supports AI-driven manufacturing, robotics, digital twins
- German Chancellor Merz highlights importance for digital sovereignty
- Collaboration aims to boost Europe’s competitiveness in AI
- Platform integrates software from Siemens, Ansys, Cadence
- Prepares groundwork for future AI gigafactory in 2027
Nvidia and Deutsche Telekom announced on June 13, 2025, a landmark collaboration to build Europe’s first industrial artificial intelligence (AI) cloud, headquartered in Germany. This pioneering initiative aims to accelerate AI adoption among European manufacturers, startups, and research institutions by providing cutting-edge AI infrastructure tailored to the continent’s industrial ecosystem. The project is slated for completion by 2026 and represents a strategic step toward Europe’s digital sovereignty and competitiveness in the global AI race.
The Industrial AI Cloud: Vision and Objectives
A New Era for European Manufacturing
The industrial AI cloud will enable manufacturers to harness AI technologies such as digital twins, robotics, and accelerated simulation to optimize design, production, and operational processes. Nvidia CEO Jensen Huang described the vision succinctly:
“In the era of AI, every manufacturer needs two factories: one for making things, and one for creating the intelligence that powers them.”
This cloud infrastructure will empower companies to build AI-driven factories, enhancing efficiency, innovation, and sustainability.
Strategic Importance for Germany and Europe
German Chancellor Friedrich Merz emphasized the project’s significance for the country’s technological future:
“Investments in strategic AI infrastructures are crucial to our country’s innovative capacity. This collaboration could represent a significant advancement for Germany’s digital independence and economic prospects.”
The initiative aligns with broader EU ambitions to establish technological sovereignty and reduce reliance on foreign AI infrastructure.
Technical Details and Infrastructure
Nvidia’s Contribution: Advanced AI Hardware
Nvidia will supply 10,000 of its latest-generation GPUs, including DGX GB200 systems and RTX PRO servers, forming the backbone of the AI cloud. These chips are designed to handle intensive AI workloads such as machine learning training, inference, and real-time simulation.
Deutsche Telekom’s Role
Deutsche Telekom will oversee the entire infrastructure, including data centers, operations, cybersecurity, sales, and AI solutions. The company’s extensive experience in telecommunications and cloud services ensures robust, secure, and compliant management of the platform.
Integration with Leading Software
The AI cloud will support software from leading industrial vendors such as Siemens, Ansys, Cadence, and Rescale. This integration allows manufacturers to run complex simulations and AI workloads seamlessly on the cloud, accelerating product development cycles.
Beneficiaries and Use Cases
European Manufacturers and Mittelstand
The platform is designed to serve large industrial players and the Mittelstand—Europe’s network of small and medium-sized enterprises critical to the economy. These companies will gain access to AI tools previously out of reach due to cost or complexity.
Startups and Academia
Startups and academic institutions will also benefit from cloud access, fostering innovation and research in AI applications across sectors.
Robotics and Physical AI
A notable early adopter is NEURA Robotics, which will use the AI cloud to power its “Neuraverse,” a platform enabling robots to learn collaboratively. NEURA’s CEO David Reger highlighted the potential:
“Physical AI is the electricity of the future — it will power every machine on the planet.”
Broader Context: Europe’s AI Ambitions
Preparing for AI Gigafactories
The industrial AI cloud is a precursor to a larger AI gigafactory planned for 2027, supported by the EU and Germany. This gigafactory will house 100,000 GPUs, providing high-performance computing resources for businesses and researchers, further solidifying Europe’s AI infrastructure.
Germany’s Growing AI Ecosystem
With over 900 startups in Nvidia’s Inception program and extensive AI education initiatives, Germany is rapidly becoming a hub for AI innovation. The new AI cloud will catalyze this ecosystem’s growth by providing scalable, sovereign infrastructure.
Industry and Government Perspectives
Deutsche Telekom CEO Timotheus Höttges
Höttges stressed urgency and collaboration:
“Europe’s technological future needs a sprint, not a stroll. Our economic success depends on quick decisions and collaborative innovations.”
Nvidia CEO Jensen Huang
Huang emphasized the transformative power of AI in manufacturing:
“By building Europe’s first industrial AI infrastructure, we’re enabling the region’s leading industrial companies to advance simulation-first, AI-driven manufacturing.”
Chancellor Friedrich Merz
Merz praised the partnership as a milestone for digital independence, noting the importance of strategic investments in AI infrastructure for economic competitiveness.
Challenges and Outlook
Ensuring Data Sovereignty and Privacy
The AI cloud will adhere to strict European data privacy and sovereignty standards, addressing concerns about data security and compliance with EU regulations.
Accelerating AI Adoption
While the infrastructure is a critical enabler, widespread AI adoption will require complementary efforts in skills development, regulatory frameworks, and industry collaboration.
Global Competition
Europe’s move to build sovereign AI infrastructure is part of a global race involving the U.S. and China. Success depends on sustained investment and innovation.
The partnership between Nvidia and Deutsche Telekom to build Europe’s first industrial AI cloud marks a transformative moment for European manufacturing and digital sovereignty. By combining cutting-edge AI hardware with robust infrastructure and software ecosystems, the initiative promises to accelerate AI-driven innovation across industries, startups, and academia. With completion targeted by 2026, this project lays the foundation for Europe’s leadership in the global AI era and prepares the continent for the next generation of AI-powered industrial revolutions.