Germany signs Nvidia deal to boost industrial AI

Germany's federal government has signed a Joint Declaration of Intent with Nvidia on industrial artificial intelligence, linking the country's AI plans with Nvidia's work in manufacturing and research.

The declaration was signed by Chancellor Friedrich Merz, the Federal Ministry for Economic Affairs and Energy, the Federal Ministry for Research, Technology and Space, and Nvidia as part of a broader push to expand industrial use of AI.

It sets out a joint initiative to advance AI models for physical AI, a term for systems that interact with machines, factories and other real-world environments. It also formalises and expands Nvidia's collaboration with Germany's federal government and its Industry 4.0 Platform, which brings together representatives from politics, industry, research and trade associations.

German officials presented the move as part of an effort to combine the country's engineering and manufacturing base with AI research and technology. The goal is to broaden the use of industrial AI and build what the government described as a modern industrial AI ecosystem in Europe.

Speaking in Berlin, Merz outlined how he sees AI fitting into the German economy, with a particular focus on manufacturers, machinery groups, carmakers and the supplier base around them.

"We are fully committed to be one of the most advanced places in the world, not just in the European Union, but in the world to work with AI, to integrate AI into our industry," said Friedrich Merz, Chancellor, Germany.

He also pointed to the role of the Mittelstand, Germany's network of small and medium-sized businesses, as central to the country's industrial strategy.

"I'm really optimistic that we will be one of the leading, if not the leading, country in the world in terms of the spread of AI for all the companies - our manufacturers, machinery, automotive industry and suppliers of the automotive industry. I think this is a great opportunity," Merz said.

"The biggest advantage we have in Germany is our so-called Mittelstand," Merz said. "Please open your doors for AI to make use of your data. This is a real secret and a real advantage for Germany to make use of all the data which is already available in our companies."

Jensen Huang, Founder and Chief Executive Officer of Nvidia, said the company's relationship with German industry began with gaming systems, workstations and automotive design in the early 2000s, and has since developed into partnerships in autonomous vehicle development and digital twins for manufacturing.

Huang said Germany's expertise in manufacturing, mathematics and science gives it a distinct foundation for industrial AI.

"That knowledge belongs to you," said Jensen Huang, Founder and Chief Executive Officer, Nvidia. "It cannot be replaced. AI can only augment your capability, it will not replace your capability. Take advantage of the technology. It's a new instrument."

He described the broader change under way across industries in stronger terms.

"This industrial revolution is so mighty, so powerful," Huang said. "In the Chancellor's words, you are re-engineering Germany. This is your chance to do it well."

Startup backing

Nvidia said it would make new investments in four German startups as part of a broader commitment of nearly USD $10 billion across Europe, covering companies, universities and research institutions.

The four companies named were Agile Robots, Avelios Medical, Mirelo and Reflex Aerospace. Nvidia has also backed other German technology groups, including n8n, Neura Robotics and Black Forest Labs.

Agile Robots, based in Munich, develops robots for manufacturing, logistics and healthcare, including robotic arms and a humanoid system. Avelios Medical, also based in Munich, develops hospital software that integrates AI into clinical and administrative workflows. Mirelo works on AI models for sound effects, speech and music for video production. Reflex Aerospace, based in Berlin, designs and builds satellites.

Industrial focus

The announcement came alongside another development involving Siemens and Nvidia. Siemens said it is working with Nvidia on AI-led autonomous factories and highlighted work at its Erlangen factory as an example of virtual production ramp-up and agent-based production planning.

According to the figures released, fully virtual production ramp-up can reduce engineering effort by up to 85%, while agent-based production planning can cut costs by up to 20%.

Separately, Nvidia researchers said they had used JUPITER, the supercomputer at the Jülich Supercomputing Centre, to run what they described as the largest and most detailed simulation so far of a fault-tolerant quantum computer, based on a 104-qubit simulation.

Merz said he wants regular discussions with Huang on Germany's progress in AI and its appeal as an investment destination.

"I would like to see him regularly, let's say at least once a year, and discuss the progress we made," Merz said. "And see a guy sitting in my office being extremely happy about Germany as a place to invest."