Deutsche Telekom and the Schwarz Group are planning to build a large “AI gigafactory” together, German newspaper Handelsblatt reported on Sunday. The project would create a big facility to meet the heavy computing needs of artificial intelligence.
The two companies are said to be in talks to apply for funding from the European Union. The European Commission has proposed about $20 billion to help build large data centres so Europe can catch up with the United States and China.
Handelsblatt said the discussions are well advanced, but the partners have not signed a formal agreement yet. People familiar with the talks told the paper that details are still being worked out.
If the plan goes ahead, the gigafactory would host powerful data centres and support AI development in Europe. The move would link a major telecom firm and a large retailer in a bid to boost Europe’s AI infrastructure.