Telus (TSX:T)(NYSE:TU) announced last week that it would be partnering with chipmaker Nvidia (NASDAQ:NVDA) to build the nation’s first “Sovereign AI” Factory. Located in Quebec, the facility will give Canadian companies and researchers access to world-class supercomputing power and software, enabling the development of advanced AI models within national borders. The initiative aims to safeguard data privacy while boosting domestic innovation.
Telus has already embedded AI across its operations and is actively involved in shaping responsible AI policies through its participation in global and national frameworks. This latest move cements its leadership in ethical AI deployment.
The factory will feature Nvidia’s cutting-edge chips to support large-scale AI training and deployment. Connected to Telus’ low-latency fiber-optic network and powered by 99% renewable energy, the site is designed for maximum efficiency. It will use 75% less water than traditional data centers and be three times more power-efficient.
As the first telecom provider in North America to become an Nvidia Cloud Partner, Telus is well positioned to lead in AI infrastructure. But investors aren’t convinced this will be a game changer for the business, as the stock actually ended up falling in the past few days.
Telus shares are down more than 10% over the past year, weighed down by flat revenue. In 2024, the telecom company generated $20.1 billion in sales, showing barely much movement from the previous year. Still, with a forward P/E of 19 and a high dividend yield of 7.7%, the stock offers compelling value—particularly as interest rates begin to ease.
Telus remains a strong pick for dividend-focused and long-term investors seeking stable income and exposure to Canada’s growing AI sector.
