Deutsche Telekom’s new alliance with Nvidia is the latest signal that telecom operators are becoming key actors behind the AI economy. Their new industrial AI cloud platform, unveiled this week, will be hosted entirely in Germany and powered by up to 10,000 Nvidia GPUs, giving manufacturers, automakers, and robotics firms the compute backbone needed to deploy AI at industrial scale.
It’s the kind of move that echoes Verizon’s major fiber deal with AWS announced this week— both pointing to the same reality: AI’s next breakthroughs won’t come from algorithms alone, but from the infrastructure that sustains them. Whether through low-latency fiber routes or sovereign GPU clouds, networks are rapidly evolving into the engine rooms of digital intelligence.
At the same time, Telefónica has unveiled a long-term plan to modernize networks and operations through AI-driven efficiencies and digital transformation across its main markets in Europe and Latin America.
Meanwhile, China is scaling its own AI infrastructure at an unprecedented pace. The Asian giant is accelerating investments across the full stack — from data centers and renewable power to localized chip supply — with plans to invest more than $70 billion in 2026 to close the gap with U.S. hyperscalers. State-backed initiatives are driving regional compute clusters, expanding electricity capacity for AI data centers, and promoting homegrown AI platforms to reduce dependence on Western hardware.
Juan Pedro Tomas
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RCR Wireless News
RCR Top Stories
Nvidia and DT ignite Industry AI: Deutsche Telekom and Nvidia unveil Europe’s first Industrial AI Cloud — a sovereign, GPU-powered platform designed to transform German manufacturing with digital twins, robotics, and next-generation industrial AI applications.
SoftBank taps Nokia for 5G upgrade: Nokia and SoftBank expand their partnership to modernize Japan’s 4G and 5G networks using AI-driven AirScale and MantaRay systems, while deepening joint research into AI-RAN and 6G innovation.
Telefónica unveils ‘Transform & Grow’ plan: Telefónica unveiled its Transform & Grow plan, a five-year roadmap to boost efficiency, expand AI-driven services, and reinforce Europe’s digital autonomy while targeting €3 billion in savings by 2030.
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Beyond the Headlines
China’s AI infra surge: With electricity capacity set to rise 30% this year and $70 billion in planned investments for 2026, China is building AI infrastructure at scale.
Synopsys and Nvidia’s joint vision for AI-enhanced chip engineering: Synopsys, an industry bellwether in electronic design automation (EDA) and silicon IP, attended Nvidia GTC — and announced yet another collaboration with the chip giant. Synopsys is using the Nvidia NeMo Agent Toolkit and Nemotron open models for AgentEngineer, Synopsys’ agentic AI technology.
Inside the AI data center: As AI workloads surge, hyperscale AI data centers are redefining infrastructure. Built for scalability and speed, these facilities handle massive compute demands with efficiency — and without constant infrastructure overhauls.
What’s a neocloud?: Not that the industry needs another buzzword, but what exactly is a neocloud? And what opportunities could this new infrastructure unlock for telcos facing mounting demands from AI workloads to cloud-native 5G?
The platformization imperative: How can telcos transform networks into intelligent platforms that leverage AI, cloud, and edge computing to move beyond connectivity, create value, and compete in the emerging platform economy?
What We’re Reading
Lifeline for Vi: U.S. private equity firm Tillman Global Holdings is in talks to invest up to $6 billion in Vodafone Idea, contingent on government relief for its mounting AGR and spectrum dues.
AI drives job cuts at IBM: IBM will trim a low single-digit share of its 270,000-strong workforce this quarter — about 3,000 jobs — as AI automation and productivity initiatives reshape staffing levels.
Satellite IoT expands: Vodafone IoT is partnering with Iridium to integrate NTN Direct satellite service, extending NB-IoT connectivity to remote areas and ensuring seamless global coverage for industrial and automotive customers.
KT rebuilds trust: South Korea’s KT will replace all customer SIM cards free of charge and begin its CEO search after a major hacking scandal triggered political scrutiny and consumer backlash.
Airtel tightens control: Bharti Airtel gained approval to raise its stake in Indus Towers by up to 5%, reinforcing control of India’s top tower operator as regulatory clarity boosts sector sentiment.
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