Nov 4 (Reuters) - Deutsche Telekom and Nvidia ( NVDA )

are launching an AI cloud for industrial applications

in a 1 billion euro ($1.2 billion) partnership that is set to go

live in the first quarter of 2026, the German group said on

Tuesday.

The cloud will operate from a refurbished Munich data

centre housing up to 10,000 Nvidia Blackwell graphics processing

units (GPUs), with SAP providing the software stack

for the cloud, Deutsche Telekom said.

Companies will be able to book computing power as needed to

develop industrial AI applications, Deutsche Telekom CEO Tim

Hoettges told a press conference. The cloud will also serve

public services and defence sectors, he added.

"We've taken more than 100 companies on board ... (and)

investments to the tune of 750 billion (euros) have been

promised," said German Minister for Digital Transformation

Karsten Wilderberger, who also took part in the conference,

referring to the government's "Made for Germany" initiative

aimed at boosting growth in the country.

"If we learn that the industry, the public services are using

this infrastructure, Deutsche Telekom is willing to double down

on these investments," Hoettges added.

Nvidia ( NVDA ) CEO Jensen Huang said the artificial intelligence

giant was also willing to invest more in the country.

Deutsche Telekom said the cloud would be used to develop

AI-powered robots to automate factories and train large language

models.

Agile Robots, a Germany-based company whose robots are

already being used to build the Munich data centre, is among the

early adopters of the service, its CEO Zhaopeng Chen told the

conference.

Another early user, German drone maker Quantum Systems told

reporters it would use the cloud to develop air- and sea-based

drones for surveillance and military purposes.

($1 = 0.8575 euros)