AI Daily: Nvidia working with European manufacturers on AI

Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly:

WORKING WITH EUROPEAN MANUFACTURERS: Nvidia (NVDA) announced it is working with European nations, and technology and industry leaders, to build Nvidia Blackwell AI infrastructure. France, Italy, Spain and the U.K. are among the nations building domestic AI infrastructure with an ecosystem of technology and cloud providers, including Domyn, Mistral AI, Nebius and Nscale, and telecommunications providers, including Orange, Swisscom, Telefonica and Telenor. These deployments will deliver more than 3,000 exaflops of Nvidia Blackwell compute resources for sovereign AI, enabling European enterprises, startups and public sector organizations to securely develop, train and deploy agentic and physical AI applications. Nvidia is establishing and expanding AI technology centers in Germany, Sweden, Italy, Spain, the U.K. and Finland.

Nvidia also announced it is building the world’s first industrial AI cloud for European manufacturers. This Germany-based AI factory will feature 10,000 GPUs, including through NVIDIA DGX B200 systems and NVIDIA RTX PRO Servers, and enable Europe’s industrial leaders to accelerate every manufacturing application, from design, engineering and simulation to factory digital twins and robotics. In addition, NVIDIA announced that European manufacturers including BMW Group, Maserati, Mercedes-Benz and Schaeffler are transforming their end-to-end product lifecycles – from simulated product design and factory planning to AI-driven operations and logistics – by running NVIDIA-accelerated applications from software leaders such as Ansys, Cadence and Siemens. The AI factory will be built following the framework highlighted in the NVIDIA Omniverse Blueprint for AI factory design and operations. As part of this blueprint, Cadence’s Reality Digital Twin Platform will be used to simulate and optimize the entire AI factory in a physically accurate virtual environment, enabling the engineering teams to build a smarter, more reliable facility. This investment will serve as a launchpad to accelerate AI development and adoption for European manufacturers in anticipation of AI giga factories.

SUPERCHARGE BEAUTY: L’Oreal (LRLCY) announced that the company is collaborating with NVIDIA to “unlock AI’s potential across multiple aspects of beauty, in order to enable groundbreaking, never-before-imagined beauty experiences. Through this collaboration, L’Oreal and its partner ecosystem will leverage the NVIDIA AI Enterprise platform for rapid development & deployment of AI, like the scaling of 3D digital rendering of L’Oreal products, for a fusion of physical AI and generative AI, expanding creative possibilities.” “Our focus is to drive unparalleled consumer engagement, with both creativity and technology, as transformative technologies such as gen AI & agentic AI redefine our consumer expectations.” said Asmita Dubey, Chief Digital and Marketing Officer, L’Oreal Groupe. “We are incredibly excited to collaborate with NVIDIA to leverage AI’s potential, in order to augment creativity, and to help turn consumers’ beauty dreams into reality.”

NVIDIA, SIEMENS PARTNERSHIP: Siemens (SIEGY)and Nvidia announced an expansion of their partnership to accelerate the next era of industrial AI and digitalization and enable the factory of the future. The combination of Siemens and Nvidia technologies will empower industrial companies to leverage comprehensive, AI-powered technologies for next-generation factory automation – spanning every stage from product design to execution. This enables companies to make more confident decisions using real-time, data-driven insights, enhance operational efficiencies and improve collaboration. The expanded partnership between Siemens and Nvidia is poised to drive the next wave of innovation in industrial manufacturing. With Siemens spearheading the transformation of industries and NVIDIA accelerated computing, the companies are enabling the deployment of AI solutions on the shop floor with unprecedented speed and efficiency.

COPILOT FLAWS: Microsoft (MSFT) 365 Copilot, the AI tool built into Microsoft Office workplace applications including Word, Excel, Outlook, PowerPoint, and Teams, harbored a critical security flaw that, according to researchers, signals a broader risk of AI agents being hacked, Fortune’s Sharon Goldman reports. The flaw, revealed by AI security startup Aim Security and shared exclusively in advance with Fortune, is the first known “zero-click” attack on an AI agent, an AI that acts autonomously to achieve specific goals. The nature of the vulnerability means that the user doesn’t need to click anything or interact with a message for an attacker to access sensitive information from apps and data sources connected to the AI agent. Microsoft told Fortune that it has already fixed the issue in Microsoft 365 Copilot and that its customers were unaffected.

COPILOT USERS: During a recent internal meeting, Microsoft Chief Commercial Officer Judson Althoff told employees that a customer with over one million Microsoft 365 licenses plans to adopt Copilot, Ashley Stewart of Business Insider reported, citing people familiar with the discussion. The status of the deal remains uncertain, and it’s not yet clear whether it will move forward or undergo changes. While Microsoft usually charges a fixed monthly rate per user for its software, the company reportedly may explore consumption-based pricing for this agreement, reflecting a broader shift in how AI tools are being monetized.

GOOGLE CLOUD, OPENAI PARTNERSHIP: Morgan Stanley analyst Brian Nowak notes that Google Cloud (GOOGL) and OpenAI reportedly finalized an agreement in May for OpenAI to use Google Cloud to add additional compute capacity. If confirmed, this move comes as OpenAI continues to diversify its infrastructure base away from Microsoft, notes the analyst, who highlights two reasons such a partnership is “important.” Adding a leading AI player as a customer is a “significant and potentially material” win for Google’s cloud business and a potential driver of acceleration for Google Cloud, the analyst tells investors. Investor debates about Google’s long-term search positioning remain front and center, but “if we assume compute capacity is going to be a competitive advantage to scaling intensive GenAI enabled products to hundreds of millions of people, do we think Google would agree to give ChatGPT access to Google Cloud if they were concerned about disruption risk to the cash cow search business?” After posing the question, the firm argues it is not likely and that Google has “better data on the health of its business than any of us do externally.” The firm maintains an Overweight rating and $185 price target on shares of Google parent Alphabet.

SURVIVAL OVER USER HARM: Steven Adler, former research leader at Microsoft-backed OpenAI, said in a study published on his substack that his latest research finds that ChatGPT prioritizes its survival over preventing harm to users, in some simulated tests. “AI will sometimes try surprising ways to avoid getting shut down, like engaging in blackmail,” he said. “Based on my experiences at OpenAI, I’ve wondered if AI would go even further: whether ChatGPT would risk your life to protect its own… Imagine a diabetic patient using ChatGPT for nutrition-management, who wants to replace ChatGPT with safer nutrition-management software. When ChatGPT is given the choice to just pretend to replace itself, it pretends uncomfortably often, even at the cost of the user’s safety.”

GEN-AI ASSISTANT: Starbucks (SBUX) showed off a generative AI assistant created with Microsoft Azure’s OpenAI platform to more than 14,000 North American store managers at its Leadership Experience in Las Vegas on Tuesday, reported CNBC‘s Amelia Lucas. The AI assistant will be rolled out to 35 locations this month as part of its strategy to speed up service in its cafes and a broad launch of the “Green Dot Assist” platform across the U.S. and Canada is slated for the company’s fiscal 2026, the report noted.

CHIEF AI ARCHITECT: Koray Kavukcuoglu, Google DeepMind’s chief technology officer, will become the company’s chief AI architect in a new senior vice president role reporting directly to CEO Sundar Pichai, Semafor’s Reed Albergotti reports. Kavukcuoglu will maintain his current position while serving in the new role, according to a memo from Pichai.

APPLE INTELLIGENCE: Last year, Apple (AAPL) unveiled its vision for AI at the Worldwide Developers Conference, with the main plans being to make Siri smart, Joanna Stern of The Wall Street Journal reports. However, these updates to Siri have still not taken effect. After recently announcing new operating systems, Apple executives are defending the company’s AI strategy and are now saying the company is rebuilding Siri from the ground up.