Nvidia teams with Deutsche Telekom to increase sovereign AI in Germany

Nvidia (NASDAQ:NVDA) said on Friday that it has teamed up with Deutsche Telekom (OTCQX:DTEGY) to bring sovereign artificial intelligence to Germany, as it looks to build an AI industrial cloud for European manufacturing companies.

Nvidia shares fell 1.5% in premarket trading.

The AI factory will be operated by Duetsche Telekom and will enable European companies to increase their manufacturing applications in a number of areas, including design, engineering, simulation, digital twins and robotics.

The AI cloud will be implemented by 2026 at the latest, the companies said.

“In the era of AI, every manufacturer needs two factories: one for making things, and one for creating the intelligence that powers them,” said Nvidia CEO and founder Jensen Huang in a statement. “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 factory was first announced on Wednesday but only officially unveiled today. Huang met with German Chancellor Friedrich Merz on Friday as part of the unveiling.

“Europe’s technological future needs a sprint, not a stroll,” Timotheus Höttges, CEO of Deutsche Telekom AG, added. “We must seize the opportunities of artificial intelligence now, revolutionize our industry and secure a leading position in the global technology competition. Our economic success depends on quick decisions and collaborative innovations.”