• Nvidia to build its first industrial AI cloud platform in Germany.
• The company plans to establish 20 AI factories across Europe within two years.
• Partnerships with firms like Mistral will support the development of AI technologies.
• European computing capacity is expected to increase tenfold, addressing GPU shortages.
• Nvidia's efforts come in response to declining sales in China due to export restrictions.

Nvidia is set to build its first industrial artificial intelligence cloud platform in Germany as part of a broader push into the European market, according to CEO Jensen Huang. During the VivaTech conference in Paris, Huang announced that this facility would assist car manufacturers like BMW in accelerating various manufacturing processes, such as design and logistics, using advanced AI technologies and robotics. He emphasized that "in just two years, we will increase the amount of AI computing capacity in Europe by a factor of 10," highlighting Europe’s evolving role in AI development according to Reuters.

As part of its strategy, Nvidia plans to partner with local firms, including the French AI startup Mistral, to build a cloud platform powered by 18,000 of Nvidia's latest chips. Huang reiterated the importance of developing a local AI ecosystem, stating, “Sovereign AI is an imperative,” referring to the growing need for European companies to manage their own technological capabilities without reliance on external sources. This initiative is crucial as Europe currently hosts less than five percent of global computing power, according to IndiaTimes and South China Morning Post.

Nvidia's expansion includes plans to construct 20 AI factories across various European countries, with an eye on enhancing partnerships with established local companies such as Siemens and Schneider Electric. These AI factories, which Nvidia describes as specialized data centers, are vital for developing and deploying AI models efficiently while increasing local technological capabilities, as highlighted by Huang's remarks during the conference. "Europe has now awakened to the importance of AI factories and AI infrastructure," he stated, amid growing interest from local industries, according to Reuters and South China Morning Post.

The push into Europe also comes in response to Nvidia's declining sales in China due to tightening export controls imposed by the US government. With the expectation of facing up to US$8 billion in revenue losses, Nvidia aims to capture growth in Europe, where AI demand is rising rapidly. Huang’s efforts to promote AI infrastructure will potentially address local GPU shortages and further establish Nvidia's presence in a region keen on expanding its technological capabilities according to IndiaTimes and South China Morning Post.