A landmark €1 billion Industrial AI Cloud hub is being launched in Munich by Nvidia and Deutsche Telekom to accelerate Europe’s AI capabilities and data sovereignty, with SAP providing core platform integration.

The project aligns with an EU-wide AI strategy aimed at tripling computing capacity, though funding and approvals can slow progress amid competition with U.S. and Asian AI ecosystems.

Live demonstrations showcased practical use, including AI-powered robotics and digital twins on factory floors led by Agile Robots and Wandelbots.

DT provides connectivity, facilities, power, and security, while SAP Integrates compute with enterprise workflows via its Business Technology Platform; early ecosystem players like Agile Robots and Perplexity will handle installation and in-country AI inferencing.

Use cases center on factory digital twins, physics simulations, generative design, and real-time process optimization, enabling SMEs and large enterprises to access high-end compute with low latency and compliant data handling.

A quoted sentiment underscored German engineering strength, reinforcing the strategic importance of the initiative.

Telekom’s Tim Höttges frames AI as essential for industry and Germany’s competitiveness, noting current gaps in utilization relative to other countries.

The UK is expanding Open RAN with six new vendors joining its connectivity programme to trial real-world products, supporting scalable, commercial open networks through the UK’s OTIC initiative.

German Digital Minister Karsten Wildberger welcomes the investment as progress toward stronger AI adoption and new business models.

Industry players view the platform as a pivotal enabler for Industry 4.0, envisioning two factories per company: a physical factory and an AI-driven one.

The concept envisions factories of intelligence powering semiconductor and manufacturing innovations via secure, privacy-respecting AI workloads.

There are binding commitments for the new center, signaling strong corporate demand and defense-related AI usage through partners like Agile Robots.