Nvidia invests billions of dollars in Germany; Jensen Huang: Once a technology powerhouse, the country has fallen behind, which pains me deeply

Nvidia is advancing its nearly $10 billion investment plan in Europe to Germany. At the "Invest in Germany" summit in Berlin, Nvidia signed a memorandum of understanding with the German government, announcing investments in four German startups and a collaboration agreement with Siemens for AI factories, further strengthening its strategic presence in the European industrial AI sector.

At the summit's opening speech, German Chancellor Merz called on the business community to encourage German SMEs to open their data to AI and emphasized Germany's intention to become a global leader in industrial AI applications. Nvidia CEO Jensen Huang said on stage that AI can only enhance human capabilities, not replace expertise, characterizing it as a "new tool" for businesses.

Jensen Huang also lamented Germany's lag in technological competition:

“Frankly, nothing saddens me more than seeing a technologically advanced nation lag so far behind in technology. I think the reason might be the European way of overthinking everything. I feel Germany has massive talent—just go for it.”

This collaboration covers multiple fields such as manufacturing, robotics, healthcare, and aerospace, and, combined with the €4.1 trillion potential investment projection released by the "Made for Germany" corporate alliance led by Siemens and Deutsche Bank, makes this summit an important milestone in Germany’s economic transformation narrative and provides a positive boost to market sentiment in the industrial technology and AI-related sectors.

On Monday local time, the German Ministry of Economic Affairs and Nvidia signed a memorandum of understanding for cooperation, though specific details were not disclosed. According to Nvidia’s official blog, Merz and two federal ministries have jointly developed a plan with Nvidia aimed at developing artificial intelligence to power robots, machinery, and vehicles—referred to by Nvidia as “physical AI.”

This partnership will also be extended to Nvidia’s existing framework with Germany’s “Industrie 4.0 Platform.” The platform brings together representatives from government, industry, research institutions, and trade associations to accelerate the large-scale application of industrial AI.

At the summit, Merz stated, "We are fully committed to becoming one of the world’s most advanced regions for AI applications, not only within the EU, but globally." He also noted that AI is fundamentally transforming the German economy and that the partnership with Nvidia is crucial for Germany's future.

Nvidia announced investments in four German startups: Agile Robots, Avelios Medical, Mirelo, and Reflex Aerospace, without disclosing specific investment amounts.

The four companies operate in different sectors: Agile Robots focuses on developing AI robots for manufacturing, logistics, and healthcare; Avelios Medical develops AI-powered hospital management software; Mirelo works on video and audio generative AI models; and Reflex Aerospace is responsible for satellite design and manufacturing.

These investments are part of Nvidia’s nearly $10 billion overall European investment plan, funding enterprises, universities, and research institutions across Europe. Last week, during a visit to France, Jensen Huang also announced investments in four French startups and discussed AI development with President Emmanuel Macron.

During the summit, Siemens announced the development of a new batch of AI solutions together with Nvidia at its Erlangen factory in Germany. Siemens stated that these technologies can reduce engineering workloads during production preparation by up to 85%, while AI-driven production planning can reduce costs by as much as 20%.

This collaboration agreement between Siemens and Nvidia represents the latest advancement in deepening their industrial AI footprint and is one of the most substantive industrial implementations at this summit.

During the summit, the "Made for Germany" business initiative, jointly launched by Siemens and Deutsche Bank, released a forward-looking forecast. According to Reuters, the alliance, comprising about 150 companies and investment institutions, estimates that Germany’s potential investment in AI, energy, and defense sectors could reach up to €4.1 trillion (approximately $4.6 trillion) by 2035.

The alliance also revealed that its members have already surpassed €200 billion in investments by 2025 and plan to cumulatively invest more than €850 billion by 2028.

Companies attending this summit include Mercedes-Benz, Bayer, Lufthansa, Deutsche Telekom, BlackRock, and Goldman Sachs, among others. The summit concludes on Tuesday, and Jensen Huang is expected to deliver a keynote speech at Nvidia GTC Berlin on Wednesday.

In response to widespread concerns in the German manufacturing sector about AI’s impact on employment, Jensen Huang set out his view at the summit: "That knowledge belongs to you—it cannot be replaced. AI can only enhance your abilities; it will not replace them." He characterized AI as a “new tool” available to businesses.

Jensen Huang also emphasized Germany’s traditional strengths in manufacturing, mathematics, and science, stating that AI will amplify Germany’s industrial capabilities.

Merz also urged SMEs in his speech to seize this window of opportunity and embrace AI technologies. "Germany’s biggest advantage is our SMEs," he said. "Please open up to AI and let it utilize your data. This is Germany’s true secret and advantage." Merz currently faces political pressure to boost economic growth, as German automakers, chemical, and engineering firms face fierce competition from overseas.