Artificial intelligence takes up residence in Munich?

🤖 Germany to build an “AI factory” worth €1 billion: Nvidia and Deutsche Telekom bet on Europe’s future

Nvidia and Deutsche Telekom have announced a joint €1 billion project — the construction of one of Europe’s largest “artificial intelligence factories” in Munich.

The factory will be located in an existing data center that will be converted to host 10,000 next-generation Nvidia Blackwell GPUs. These GPUs are capable of performing trillions of operations per second, and their installation will increase Germany’s overall AI computing capacity by about 50%.

The project launch is scheduled for early 2026. The goal is to create local infrastructure that will allow European companies to train and deploy AI models without relying on American or Asian data centers.

One of the first clients will be Perplexity — a fast-growing competitor to ChatGPT specializing in AI search services. The company has already confirmed that it will use the Munich center for query processing and training new models.

According to Deutsche Telekom representatives, the project will become a “European response” to the global AI race and help “strengthen the EU’s digital sovereignty.”

For Nvidia, this move is part of a broader strategy to scale up production and infrastructure to meet the growing demand for its Blackwell chips. The company is actively partnering with major telecom and cloud providers to accelerate the adoption of AI solutions in Europe.

Context:

• Over the past year, demand for AI infrastructure in Europe has grown by more than 60%.
• Germany aims to become the EU’s hub for AI development and is actively attracting investments in this field.
  
  
• According to IDC forecasts, by 2027 Europe’s share of the global AI infrastructure market could grow to 25% if such initiatives are implemented.

📡 Bottom line:

Munich is becoming not only the capital of beer and technology, but also one of the main artificial intelligence hubs on the continent.