Schwarz Digits and Bull partner up to build European AI computing services

By Leo Marchandon

Nov 3 (Reuters) - Supercomputer maker Bull and Schwarz Digits, the technology arm of Lidl-owner Schwarz Group, signed a preliminary agreement on Tuesday to jointly develop AI computing services that would operate entirely under European jurisdiction, a link-up of two companies with big AI bets.

Under the agreement, Schwarz Digits will offer the service through its STACKIT business, which rents out computing power and data storage over the internet. Bull, the state-owned French maker of Europe's fastest supercomputers, will handle manufacturing.

The two companies plan to design servers filling the data centres together, and could eventually offer business software from Germany’s SAP through the partnership, they said. Financial terms of the deal were not disclosed.

Companies and public bodies using STACKIT will also be able to use Bull’s software for building and running AI applications directly on the service.

Bull in October doubled production capacity in the only plant in Europe dedicated to building supercomputers, while Schwarz is leading a C$7 billion ($5 billion) funding round for Canadian AI lab Cohere, which is expanding in Europe through the acquisitions of German AI startup Aleph Alpha and Czech-based cybersecurity firm Aisle.

($1 = 1.3979 Canadian dollars)

(Reporting by Leo Marchandon in Gdansk, editing by Milla Nissi-Prussak)