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Deutsche Telekom and Nvidia Team Up to Build AI Cloud for European Manufacturers in Germany

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Deutsche Telekom and Nvidia announced a strategic partnership on Friday to create an artificial intelligence cloud tailored for European manufacturers, based in Germany. Nvidia will provide 10,000 graphics processing units (GPUs) to be integrated into Deutsche Telekom’s existing data centers as part of this initiative.

The project aims for implementation by 2026 and represents a critical step toward building large-scale data centers, which are key to Germany’s push to modernize its industrial sector. This move also aligns with the European Union’s broader goal to close the AI infrastructure gap with global competitors like the U.S. and China.

Nvidia CEO Jensen Huang revealed plans for the AI cloud platform in Germany earlier this week and announced Deutsche Telekom’s participation during a meeting with German Chancellor Friedrich Merz.

Merz emphasized the significance of investments in AI infrastructure for Germany’s innovation and economic future, praising Nvidia and its partners’ commitment. He described the partnership as a vital step for strengthening Germany’s digital sovereignty.

GPUs have become essential for advancing AI capabilities. Under Chancellor Merz’s leadership, Germany plans to develop large data centers supported by state subsidies covering 35% of costs, while the industry is expected to cover the remaining 65%. The government aims to secure up to 100,000 GPUs to meet growing AI demands.

Earlier this year, the European Commission unveiled a $20 billion funding plan to accelerate AI data center construction across Europe.

Deutsche Telekom recently announced collaborations with companies like SAP, web hosting firm Ionos, and retailer Schwarz to seek EU support for building large data centers in Germany.

Nvidia is also working with European AI company Mistral to develop AI computing platforms powered by 18,000 Nvidia GPUs to serve European businesses.

Amazon Challenges EU’s ‘Very Large Online Platform’ Label, Citing Lack of Systemic Risk

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Amazon has asked Europe’s General Court in Luxembourg to overturn its designation as a “very large online platform” (VLOP) under the European Union’s Digital Services Act (DSA). The U.S. e-commerce giant argues that it does not pose systemic risks to users that would justify the stricter regulatory requirements imposed by the label.

The DSA, which came into force in 2022, targets large tech companies, requiring those classified as VLOPs to implement enhanced measures to combat illegal and harmful content. These measures include comprehensive risk management, independent auditing, and data sharing with regulators and researchers.

Amazon’s legal counsel, Robert Spano, told the court that online marketplaces like Amazon’s store do not create systemic risks, and that VLOP rules are ineffective in preventing the spread of illegal or counterfeit goods on such platforms. He emphasized that any risks are limited to individual customers rather than the platform’s entire user base, and existing product safety laws already address these issues.

Spano criticized the use of size as a metric for risk, describing it as “arbitrary, disproportionate and discriminatory.”

The court is expected to deliver its verdict in the coming months.

Other major tech companies, including Meta Platforms, TikTok, and German retailer Zalando, have also contested aspects of the DSA.

Meta and TikTok Challenge EU Tech Supervisory Fees at General Court

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Meta Platforms and TikTok have taken their dispute over the European Union’s supervisory fees to the EU General Court, the bloc’s second highest judicial authority. Both companies argue that the fees imposed under the 2022 Digital Services Act (DSA) are disproportionate and based on flawed calculations.

The DSA requires large online platforms, including Meta, TikTok, and 16 other firms, to pay an annual supervisory fee of 0.05% of their global net income. This fee is intended to cover the European Commission’s costs for monitoring compliance with the law. The fee’s size depends on each company’s average monthly active users and their profit or loss status in the previous year.

Meta questioned the methodology used by the Commission, saying it unfairly applied group-level revenue rather than that of the subsidiary. Meta’s lawyer, Assimakis Komninos, criticized the fee’s calculation as opaque and inconsistent with the DSA’s principles, describing it as a “black box” that led to “implausible and absurd results.”

TikTok, owned by ByteDance, echoed these concerns. TikTok’s lawyer Bill Batchelor accused the Commission of inflating fees through double-counting users who access the platform on multiple devices and argued that the fee exceeded legal limits by referencing group profits rather than individual entities.

The European Commission defended its approach. Commission lawyer Lorna Armati said using consolidated group profits was justified, as the group’s total financial resources are available to pay the fee. She also rejected claims of insufficient transparency or unfair treatment.

The court is expected to deliver its ruling on these cases, Meta Platforms Ireland v Commission and TikTok Technology v Commission, next year.