“Tech CEO Urges Government Investment in Innovation”
(Reuters) – The CEO of Deutsche Telekom emphasized the importance of Germany’s incoming government and Europe taking a proactive role in advancing artificial intelligence (AI) and data center technology to stay competitive globally, particularly against the U.S. and Asia.
WHY IT’S IMPORTANT
A recent development by Chinese startup DeepSeek caused a significant impact on global equities markets, prompting a sell-off exceeding $1 trillion. DeepSeek introduced a cost-effective AI reasoning model that surpassed many Western counterparts, prompting urgency for further innovation. Telekom CEO Tim Hoettges noted a growing demand for data centers in Europe, despite the emergence of efficient programs like DeepSeek that require less computing power. Deutsche Telekom is strategically investing in data center infrastructure, with plans to establish four new centers in Europe, aiming to scale up to one gigawatt of capacity.
KEY QUOTES
Hoettges stressed the necessity of data centers in Europe and specifically in Germany during a press call following Deutsche Telekom’s annual results release. He highlighted the competitive landscape with America and Asia, emphasizing the need for Europe to be self-sufficient in technological advancements. Hoettges emphasized that increased computing power is vital for future economic growth and digital sovereignty in Europe, committing to contributing to this goal.
CONTEXT
In February, European policymakers convened with tech industry leaders in Paris to address AI development. At the AI summit, European Commission President Ursula von der Leyen announced a goal of mobilizing 200 billion euros ($210 billion) in public and private funding to bolster Europe’s AI infrastructure, with the EU committing 50 billion euros to this initiative. This ambition aligns with U.S. initiatives, where President Donald Trump announced up to $500 billion in private sector investments for AI infrastructure.
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(Reporting by Hakan Ersen in Frankfurt and Marleen Kaesebier in Gdansk; Editing by Milla Nissi)
