Nvidia CEO Huang embarks on a European trip amidst telecom speculations
Nvidia and Deutsche Telekom are teaming up to construct Europe's first industrial AI data center, a game-changer for European manufacturing. The project, scheduled for completion by 2026, boasts at least 10,000 high-performance GPUs donated by Nvidia. The cloud infrastructure will cater to European industrial companies, as well as start-ups and research institutions.
In the heart of Europe, this cloud aims to revolutionize AI innovation. Nvidia provides the technological chops, while Deutsche Telekom focuses on infrastructure, security, operations, and distribution. Emphasis on EU data protection standards ensures a secure and sovereign data environment.
According to Telekom CEO Tim Höttges, "Europe needs a sprint, not a stroll" to stay ahead in the global tech race. Jensen Huang, Nvidia's CEO, echoes this sentiment, saying, "In the AI era, every manufacturer needs two factories: one for products and one for the intelligence behind them." This project forms part of an EU strategy to create five AI gigafactories across Europe, with governments and industry footing the bill.
The collaboration isn't Deutsche Telekom's only venture with Nvidia. Siemens, Schaeffler, SAP, Ionos, and the Schwarz Group have also joined forces with Nvidia, working on various data center projects in the EU.
While this partnership significantly boosts Deutsche Telekom's position in Europe's expanding AI sector, the stock market remains unphased. The collaboration marks a strategic step for Deutsche Telekom, but haven't caused any significant shifts in stock prices. Investors should keep a close eye on the 30-euro mark and be vigilant of the stop at 28.00 euros.
Research Minister Dorothee Bär and Digital State Secretary Thomas Jarzombek have welcomed the project, advocating for greater corporate participation in AI infrastructure development. The partnership is seen as a wake-up call for hesitant German companies to get onboard with the AI revolution.
With Nvidia's technological expertise and Deutsche Telekom's infrastructure prowess, they are revolutionizing European business by creating a finance-driven AI data center. This project will strengthen the technology sector in Europe, fostering innovation and AI-driven growth for industrial companies and research institutions.
