NVIDIA and Deutsche Telekom are teaming up to build Europe’s first industrial AI cloud, set to launch in Germany by 2026. The goal: to modernize manufacturing across Europe and secure Germany’s place in the AI race. Announced during NVIDIA CEO Jensen Huang’s visit with German Chancellor Friedrich Merz, the partnership will deliver 10,000 NVIDIA GPUs and a secure, sovereign AI infrastructure.
“This is a key step toward Germany’s digital independence,” Merz said. The project reflects growing pressure on European industries to adopt AI faster and compete globally in smart manufacturing. With the AI cloud, Germany aims to turn its industrial strength into a digital advantage.
Inside the AI Cloud Transforming European Manufacturing
The initiative, called the Industrial AI Cloud, will run on 10,000 NVIDIA GPUs using DGX GB200 systems and RTX Pro Servers. Deutsche Telekom will deliver and manage the infrastructure, including data centers, AI solutions, and cybersecurity. The infrastructure will follow strict European standards on data privacy and sovereignty.
This cloud will handle AI-heavy workloads like design simulation, robotics, and digital twins, technologies that are reshaping how factories operate. Manufacturing leaders will be able to design and test smarter systems virtually before production begins.
NVIDIA CEO Jensen Huang summed up the shift: “In the era of AI, every manufacturer needs two factories, one for making things, and one for creating the intelligence that powers them.” Top software from Siemens, Cadence, Ansys, and other vendors will run directly on the cloud. Telekom CEO Timotheus Höttges emphasized the urgency: “Europe’s technological future needs a sprint, not a stroll. Our economic success depends on collaborative innovations.”
From AI Cloud to Gigafactories, Germany’s Next Digital Frontier
This AI cloud is only phase one. By 2027, Germany plans to activate an “AI Gigafactory”, a massive infrastructure backed by the EU and equipped with 100,000 GPUs. It will offer AI compute to startups, universities, and enterprises across sectors. One company already tapping in is NEURA Robotics. The firm will use the cloud to train AI robots through its Neuraverse platform, where robots can learn skills like welding or ironing.
“Physical AI is the electricity of the future,” said founder David Reger. “This is how we help Europe stay in control of its robotics future.” The challenge is scale. A Deloitte study warns that Germany must triple its data center capacity by 2030 to meet growing AI demand. The AI cloud, operated under Telekom’s strict data protection protocols, aims to deliver both scale and trust.
The ripple effects will reach far beyond big manufacturers. Thousands of small and mid-sized companies in Germany’s Mittelstand will gain easier access to AI resources. Around 900 German startups in NVIDIA’s Inception program will also gain access. Meanwhile, NVIDIA’s Deep Learning Institute continues offering training and certification to grow Germany’s AI talent pool.
NVIDIA and Telekom Signal Europe’s AI Ambition
By launching Europe’s first industrial AI cloud, NVIDIA and Deutsche Telekom are helping retool manufacturing from the ground up. The project reflects a broader push for digital sovereignty, a goal that’s becoming critical in a fast-moving AI race. As Germany prepares for its AI Gigafactory future, the industrial AI cloud marks a powerful start. If successful, it won’t just change how goods are made, it will reshape how intelligence flows across Europe’s economic engine.
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