Germany wants to become a global leader in industrial AI: government signs memorandum with NVIDIA on ‘physical AI’

Germany wants to become a global leader in industrial AI: government signs memorandum with NVIDIA on ‘physical AI’

The German government and NVIDIA have agreed to jointly develop industrial artificial intelligence and models for physical AI. The country wants to combine its expertise in mechanical engineering and manufacturing with advanced AI technologies.

The company reported.

At the same time, NVIDIA announced plans to invest in four more German startups — Agile Robots, Avelios Medical, Mirelo and Reflex Aerospace.

How Germany and NVIDIA will develop industrial AI

During the Invest in Germany Summit, Chancellor Friedrich Merz, the Federal Ministry for Economic Affairs and Energy, the Ministry of Research, Technology and Space and NVIDIA signed a joint declaration of intent.

The parties plan to create a joint initiative to develop modern physical AI models and to more widely deploy AI in German industry. The work will involve the German Industry 4.0 platform, which includes representatives from government, business, academia and industry associations.

The German chancellor separately appealed to the leaders of Mittelstand?Mittelstand — the group of small, medium and often family-owned companies that form the backbone of Germany’s economy. to allow algorithms access to companies’ accumulated datasets;

NVIDIA CEO Jensen Huang assured that AI will not replace German engineers but will amplify their skills: “This knowledge belongs to you, it cannot be replaced — it’s a chance to reboot the country’s engineering legacy.”

According to Merz, Germany wants to become one of the world’s leading hubs for using AI in mechanical engineering, the automotive industry and among suppliers to the automotive sector.

Which German startups NVIDIA will invest in

NVIDIA CEO Jensen Huang announced planned NVIDIA investments in four companies:

• Agile Robots — a Munich-based developer of industrial robots, including the humanoid Agile ONE;
• Avelios Medical — a developer of an AI system for hospitals;
• Mirelo — a startup that creates models for generating sound effects, speech and music for video;
• Reflex Aerospace — a Berlin-based company that develops satellites with a lead time to launch of around 12 months.

Previously NVIDIA had already invested in German companies n8n, Neura Robotics and Black Forest Labs.

These investments are part of NVIDIA’s broader commitment to direct nearly $10 billion to support companies, universities and research institutions in Europe.

Recall that in September 2026 NVIDIA agreed to acquire the platform for AI developers Hugging Face. The deal amount is $12.93 billion. According to NVIDIA’s CEO, after the deal Hugging Face will keep its brand and remain an open platform for the entire AI ecosystem.

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