In a significant move to advance Europe's AI capabilities, NVIDIA and Deutsche Telekom have announced a strategic partnership to establish the continent's first industrial AI cloud infrastructure on German soil.
The collaboration, announced on June 13, 2025, will create what the companies call an "AI factory" - a specialized cloud computing environment designed to accelerate manufacturing applications through artificial intelligence. Deutsche Telekom will operate the facility, providing secure, sovereign infrastructure while ensuring European data protection standards are maintained.
The initial phase will incorporate 10,000 NVIDIA Blackwell GPUs, including NVIDIA DGX B200 systems and RTX PRO Servers, along with NVIDIA's networking and AI software. This deployment represents Germany's largest single AI infrastructure investment to date.
"In the era of AI, every manufacturer needs two factories: one for making things, and one for creating the intelligence that powers them," said Jensen Huang, founder and CEO of NVIDIA. "By building Europe's first industrial AI infrastructure, we're enabling the region's leading industrial companies to advance simulation-first, AI-driven manufacturing."
The AI cloud will enable European manufacturers to accelerate applications in design, engineering, simulation, digital twins, and robotics. Companies including BMW Group, Maserati, Mercedes-Benz, and Schaeffler are already planning to transform their end-to-end product lifecycles using NVIDIA-accelerated applications.
Timotheus Höttges, CEO of Deutsche Telekom, emphasized the urgency of embracing AI: "Europe's technological future needs a sprint, not a stroll. We must seize the opportunities of artificial intelligence now, revolutionize our industry and secure a leading position in the global technology competition."
The partnership signals a maturing AI market where practical implementation is replacing early exuberance. This industrial AI cloud serves as a precursor to the more ambitious AI gigafactory initiative - a 100,000 GPU-powered program backed by the European Union, expected to go online in 2027. Implementation of the current industrial AI cloud is scheduled for completion by 2026 at the latest.