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AI Compute Race Intensifies With OpenAI’s Reported $38 Billion AWS Deal and TelekomNvidia Munich Build

Fresh disclosures highlight the cost of scale as Europe pursues digital sovereignty.

Overview

  • Microsoft’s latest quarterly filing, using equity accounting for its roughly 27% stake, implies OpenAI lost about $11–12 billion in the most recent quarter.
  • OpenAI has reportedly signed a seven-year, $38 billion agreement for AWS access to “hundreds of thousands” of Nvidia-based systems to secure model training and operations.
  • Deutsche Telekom and Nvidia announced a roughly €1 billion KI-Fabrik in Munich with up to 10,000 Nvidia GPUs, aiming for service availability in early 2026.
  • The Munich facility focuses on data sovereignty, keeping customer data in Germany with EU staff, with SAP as a core partner and initial users including Siemens, Agile Robots and Perplexity.
  • Telekom says the project will lift Germany’s AI compute capacity by about 50%, underscoring a global buildout as major firms lock in multiyear, multibillion infrastructure commitments.