German tech giants Deutsche Telekom, Ionos, and Schwarz Group are competing for EU funding to build an AI Gigafactory. Deutsche Telekom is forming a consortium with partners including SAP to apply for a share of €20 billion from the European Commission, aiming to create facilities with 100,000 high-performance AI chips. The company has also partnered with NVIDIA to develop Europe's first industrial AI cloud by 2026. These initiatives respond to calls for European technological sovereignty in AI. Applications close June 20, with outcomes significantly impacting Europe's AI capabilities.