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Nvidia chief urges German manufacturers to adopt AI, says tech won’t replace heavy industry

Reported by Varun Krishnan (Senior Writer) · Livemint - Technology ·

Unconfirmed — Reported by one source so far

Reported by one source so far

Worth knowing
Nvidia chief urges German manufacturers to adopt AI, says tech won’t replace heavy industryPhoto: Wikimedia Commons

Nvidia CEO Jensen Huang told German car and industrial‑machine makers to adopt artificial intelligence now to re‑engineer the country’s struggling business model. Huang spoke Monday at a Berlin investment conference with German Chancellor Friedrich Merz, warning that “electrons will never replace atoms” and that AI will only augment, not replace, manufacturing skill.

What Happened

Huang said the next wave of AI is physical – it will interact with robots, factories, cars and other heavy‑industry tools. He called Germany’s manufacturing data and expertise a natural resource that must be paired with AI to stay competitive.

Reaction

Merz echoed the message, calling AI an opportunity for the Mittelstand, Germany’s many small‑ and medium‑sized specialised firms. Former ECB chief Mario Draghi was quoted saying Europe’s high‑quality public‑sector manufacturing data could let the continent compete with the U.S. and China.

Context

Germany faces high energy costs after losing cheap Russian gas, competition from Chinese auto makers and lengthy red‑tape that slows projects. Europe also lags the U.S. in building data‑center capacity and worries about U.S. legal reach over data stored on American servers. Huang suggested Germany import AI tools but keep the code, culture and knowledge at home, turning AI into a domestic growth engine.

ExplainerWhy this matters

What Happened

Nvidia chief Jensen Huang met Chancellor Friedrich Merz in Berlin and urged German manufacturers to pair their abundant production data with artificial intelligence, saying the upcoming AI wave will be physical and will boost robots, factories and heavy‑industry.

Why It Matters

If German firms adopt AI, they can improve efficiency, reduce reliance on foreign tech and keep valuable data within the country. This matters because Germany’s economy is weighed down by high energy costs, competition from China and slow project approvals, and Europe worries about U.S. legal control over data stored on American servers.

What Happens Next

Germany is likely to craft policies that fund AI research for the Mittelstand, encourage domestic AI development, and invest in European data‑center capacity. The government may also set rules to protect sensitive manufacturing data while allowing companies to import AI tools, aiming to turn AI into a home‑grown growth engine.

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