AI Manufacturing Giant: German Tech Companies to Construct AI Production Facility
German Tech Giants Collaborate on AI Data Center Project
A coalition of major German technology companies is reportedly working to establish a massive artificial intelligence (AI) data center in Europe. Discussions are ongoing between software giant SAP, Deutsche Telekom, internet service provider Ionos, the Schwarz Group, and Siemens (though Siemens' participation is not yet confirmed). The group aims to jointly apply for EU financing for an 'AI Gigafactory' as per reports from Handelsblatt.
According to industry sources, SAP board member Thomas Saueressig highlighted the importance of partnership in these ventures, with the appropriate model still under discussion. Rolf Schumann, head of digital division at the Schwarz Group, expressed optimism about bringing all parties together and working collaboratively.
The EU Commission has proposed the construction of four to five AI Gigafactories across Europe, each equipped with approximately 100,000 AI chips. This exceeds four times the computing capacity of existing AI facilities, making them ideal for training large language models, such as those used by OpenAI for its chatbot ChatGPT. The project could potentially boost Europe's digital sovereignty and decrease reliance on overseas AI infrastructure.
Digital Minister Karsten Wildberger (CDU) is said to be engaging with his EU counterparts in early June to discuss AI data centers. He expressed a desire to support European companies in building a cloud infrastructure and criticized the domination of the public cloud infrastructure by non-European companies.
According to the Handelsblatt report, several key details, such as location and procurement of chips, remain undecided before the first expression of interest deadline of June 20. The consortium is currently in the advanced planning and negotiation phase, with the formal bid expected to be submitted by the aforementioned deadline.
Sources: ntv.de, AFP
[Enrichment Data: The initiative, announced by the European Commission in February, could allocate up to €20 billion ($20.9 billion) for these large AI clusters, aiming to strengthen Europe’s digital sovereignty and reduce reliance on AI infrastructure from the U.S. and China. The project is widely seen as a key step for Europe to develop its own independent AI infrastructure.]
Community policy should consider providing financial support for the collaborative venture between SAP, Deutsche Telekom, Ionos, the Schwarz Group, and potentially Siemens, aiming to establish a vocational training program in AI technology within the proposed AI Gigafactory. Such training could equip the European community with the expertise necessary to maintain and innovate the AI infrastructure, ensuring digital sovereignty and decreasing reliance on overseas AI infrastructure.
Artificial-intelligence algorithms powered by the AI Gigafactory's massive computing capacity could benefit significantly from innovative vocational training programs, enhancing the development of large language models for AI applications within the European community.
