Nvidia CEO Jensen Huang called on Germany’s industrial sector to accelerate the adoption of artificial intelligence (AI) as a means to revitalize the country’s manufacturing-based economy. Speaking on October 20 during a forum in Berlin alongside German Chancellor Friedrich Merz, Huang emphasized the potential for AI to complement, rather than replace, Germany’s established expertise in automotive and industrial engineering.
Huang, whose company produces advanced semiconductor chips and software that power AI systems used by firms such as Anthropic and OpenAI, highlighted the importance of integrating digital technologies with physical manufacturing processes. “The next wave of AI is physical. This is where AI interacts with the physical world: robotics, manufacturing, cars, heavy industry,” he said. He stressed that AI should be viewed as a tool to enhance existing capabilities, noting that “electrons will never replace atoms.”
Germany’s wealth of manufacturing data and technical knowledge—often regarded as a national asset—was identified by Huang as a critical resource that has yet to be fully leveraged. “This industrial revolution is so mighty, so powerful. You don’t have another chance,” he added, urging German manufacturers to “take advantage of artificial intelligence” to re-engineer their traditional business models.
The comments come amid broader concerns among European leaders about technological dependence on American companies in the AI sector. Chancellor Merz and other officials view AI as a key avenue for economic growth but face challenges stemming from Europe’s relatively limited infrastructure, including fewer data centers capable of supporting large-scale AI development compared to the United States. Additionally, there are ongoing worries over data security, given that European firms often rely on U.S.-based cloud providers, which introduces potential vulnerabilities related to American legal jurisdiction.
European policymakers, including former European Central Bank President Mario Draghi, have highlighted Europe’s advantage in possessing high-quality, publicly available manufacturing data, which could serve as a foundation to compete with the U.S. and China in AI advancements. Huang echoed this sentiment by encouraging Germany to develop AI technologies domestically while preserving national values and expertise. “You should not export your culture, export your values, export your knowledge,” he said.
Germany’s economy has faced significant difficulties in recent years, including the impact of the COVID-19 pandemic, loss of inexpensive Russian natural gas supplies due to the Ukraine conflict, increasing competition from China, and bureaucratic hurdles that delay investment and innovation. These factors have weighed on the country’s traditional strengths in sectors such as automotive manufacturing, railway, aerospace, and machinery exports.
Huang and Merz also pointed to the role of Germany’s mittelstand—its numerous small and medium-sized enterprises specializing in niche industrial sectors—as a critical group that could benefit from AI integration. The initiative to modernize Germany’s industrial base with AI technologies aims to boost competitiveness and address structural economic challenges, aligning with the government’s broader goals to stimulate sustainable growth.