Deutsche Telekom to provide infrastructure for SOOFI research project

Deal Analysis

Deutsche Telekom's agreement with Leibniz University Hannover to provide infrastructure for the SOOFI research project represents a strategic move into the burgeoning field of AI infrastructure. Through its T-Systems division, Deutsche Telekom will host the Sovereign Open Source Foundation Models initiative, enabling the development of a 100-billion-parameter large language model within its Industrial AI Cloud. This project, backed by the German Federal Ministry for Economic Affairs and Energy, underscores the growing importance of sovereign AI capabilities within Europe. While the exact value remains undisclosed, the contract is estimated to be worth tens of millions of euros, indicating a substantial investment in data center and AI infrastructure. This deal is notable for several reasons. It positions Deutsche Telekom as a key player in supporting cutting-edge AI research and development within Europe. The focus on open-source foundation models aligns with a broader trend towards transparency and accessibility in AI. Furthermore, the involvement of Leibniz University Hannover, a prominent research institution, lends credibility to the project. The project's aim to train a large language model entirely in Europe addresses concerns about data sovereignty and reliance on non-European AI providers. This agreement highlights the increasing demand for specialized data center infrastructure capable of handling the computational demands of large language models.

Deutsche Telekom to provide infrastructure for a 100-billion-parameter large language model.
The project is backed by the German Federal Ministry for Economic Affairs and Energy.
The deal highlights the growing importance of sovereign AI capabilities within Europe.
T-Systems will host the project in its Industrial AI Cloud.

Market Context: The data center market is experiencing rapid growth, driven by the increasing demand for cloud computing, AI, and big data analytics. This deal reflects the growing demand for specialized data center infrastructure to support AI workloads, particularly in Europe, where there is a focus on data sovereignty and open-source technologies.

Source Intelligence

KEY DETAILS

The German Federal Ministry for Economic Affairs and Energy is funding the research consortium with approximately €20m (US$23m) until July 2026. "The German Federal Ministry for Economic Affairs and Energy is funding the research consortium with approximately €20m (US$23m) until July 2026."

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Deal Size

Deutsche Telekom has secured a contract worth tens of millions of euros from Leibniz University Hannover to provide infrastructure for the SOOFI research project.

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Location

T-Systems will host the SOOFI project in Munich, using Nvidia DGX B200 systems to train a 100-billion-parameter language model for six research bodies

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Announcement

By Megan Baggiony-Taylor January 08, 2026

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COD

The new model will operate on German soil using Nvidia DGX B200 systems, with training scheduled to begin in March 2026.

PARTIES MENTIONED IN SOURCE

D

Deutsche Telekom seller

"Deutsche Telekom has secured a contract worth tens of millions of euros from Leibniz University Hannover to provide infrastructure for the SOOFI research project."

L

Leibniz University Hannover buyer

"Deutsche Telekom has secured a contract worth tens of millions of euros from Leibniz University Hannover to provide infrastructure for the SOOFI research project."

T

T-Systems seller

"T-Systems will host the SOOFI project in Munich, using Nvidia DGX B200 systems to train a 100-billion-parameter language model for six research bodies"

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Fraunhofer IAIS research

"Fraunhofer IAIS leads the development of the training pipeline and optimisation of the tokeniser, leveraging expertise from the OpenGPT-X project."

F

Fraunhofer IIS research