Deutsche Telekom Backs €1 Billion AI Data Center as Elliott Turns Up the Heat on Buybacks
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Deutsche Telekom is throwing its weight behind a billion-euro bet on artificial intelligence, joining forces with Nvidia and SAP to build a large-scale AI data center in Munich. The Bonn-based carrier will handle the network infrastructure, Nvidia will supply the hardware, and SAP will contribute the software layer. Up to 10,000 of Nvidia's high-performance chips are slated to power the facility, which the partners intend to run entirely on renewable energy. Nvidia chief executive Jensen Huang framed the announcement as the dawn of a new era of industrial transformation. The push also answers repeated calls from Bitkom president Ralf Wintergerst, who has argued that Germany's data center capacity must expand to keep pace with surging demand from domestic industry. For the DAX heavyweight, the joint venture opens a path beyond its traditional telecom business. According to an analysis by Reuters Breakingviews, the group trades at a noticeable discount to the sum of its parts, with its stake in T-Mobile US alone valued at roughly USD 180 billion. Goldman Sachs sees room for a re-rating, setting a price target of EUR 40 on the stock. The operational backdrop lends credibility to the spending plans. Second-quarter revenue rose year over year to EUR 29.93 billion from EUR 28.67 billion, while adjusted EBITDA after lease costs climbed to EUR 11.82 billion. Management, led by CEO...
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