Merz and Jensen Huang launch Germany–Nvidia physical AI pact in Berlin

Chancellor Friedrich Merz and Nvidia CEO Jensen Huang shared a stage in Berlin on 19 October 2026 as the government signed a declaration of intent with Nvidia to develop AI models for robots and industry [1][3]. Nvidia also announced planned investments in four German startups. Neither side published a funding figure [1][3].

What did Germany and Nvidia agree?

Germany's economy and research ministries signed a declaration of intent with Nvidia on physical AI on 19 October 2026. Nvidia says the declaration sets out a joint initiative to advance AI models for physical AI, meaning AI built into machines such as robots [1][3].

The initiative builds on the government's Industry 4.0 Platform, a network of politics, industry, research and trade associations [1]. The stated goal is to bring industrial AI into widespread use and to establish a state-of-the-art industrial AI ecosystem in Europe [1][3].

According to tagesschau, Nvidia will make its AI models available to small and mid-sized companies and research institutes, not only to large industry [3]. Reuters reported that the economy ministry signed a memorandum of understanding with Nvidia, without further details [2].

The government gave no investment figure [3]. Euronews reported that the federal government will put a three-digit million-euro sum into the initiative, mainly to rent compute in Deutsche Telekom's Industrial AI Cloud, with about ten firms such as Siemens and Audi plus Black Forest Labs taking part [5].

Which German startups is Nvidia backing?

Nvidia announced planned investments in Agile Robots, Avelios Medical, Mirelo and Reflex Aerospace. Nvidia says the deals are part of a nearly $10 billion commitment to companies, universities and research institutions across Europe, and it did not disclose amounts per startup [1][2].

Munich-based Agile Robots builds AI-powered robots, including its Agile ONE humanoid, and Avelios Medical, also from Munich, makes an AI-native hospital information system [1]. Mirelo builds AI models that generate sound effects, speech and music for video, and Berlin-based Reflex Aerospace builds satellites that Nvidia says are ready for launch in about 12 months [1].

Nvidia already backs German companies including n8n, Neura Robotics and Black Forest Labs [1]. According to dpa, the company says it invested almost $1 billion in Germany over the past year [4].

What did Merz and Huang say on stage?

At Kraftwerk, a former power station in Berlin, Merz said Germany wants to be one of the most advanced places in the world to integrate AI into its industry [1]. He addressed the Mittelstand, Germany's small and mid-sized firms, directly [1][2].

Huang said Germany's manufacturing knowledge cannot be replaced and that AI would amplify it [1]. dpa reports that he also urged Germany to treat data as a national resource for building its own national intelligence instead of exporting it [4].

Merz said he would like to meet Huang at least once a year to discuss Germany's progress [1]. Reuters noted that Merz is under pressure to secure growth amid rising support for the far-right AfD [2].

Why did Huang say Germany is falling behind?

Jensen Huang said before the summit that Germany was falling far behind, according to dpa. dpa reports that he made the remark to journalists in London and that clips went viral on social media over the weekend [4].

In dpa's German rendering, Huang said nothing pained him more than seeing one of the most technologically advanced countries fall so far behind, suggested Europe tends to overthink everything, and said Germany has plenty of talent and should get to work [4]. BILD contrasted that criticism with his upbeat tone in Berlin [6].

What else did Nvidia announce in Germany?

Siemens announced on the same day that it is partnering with Nvidia on AI-driven autonomous factories [1]. Nvidia says fully virtual production ramp-up at Siemens' Erlangen factory cuts engineering effort by up to 85%, and agent-based planning saves up to 20% in costs [1].

Nvidia researchers also used JUPITER, Europe's largest supercomputer at the Jülich Supercomputing Centre, to simulate a fault-tolerant quantum computer [1]. Nvidia calls the 104-qubit simulation the largest and most detailed of its kind to date [1].

What comes next?

The Invest in Germany Summit continues on Tuesday, and Huang gives his GTC Berlin keynote on Wednesday, 21 October, from 11:00 to 13:00 CEST [1][2]. Our 19 October preview asked whether Nvidia would itemise its European promises (theaipin.com/trends/nvidia-2b-europe-promise-comes-due-at-gtc-berlin). The startups are now named, but the amounts are not.

Our read

Opinion: A declaration of intent and four unpriced startup bets are a start, not an industrial strategy. The test is whether public money buys compute that Mittelstand firms actually use, and whether Nvidia's open industrial models reach them before the summit glow fades.

What we could not verify

• The size of federal funding: the government gave no figure, and the three-digit million-euro sum comes from media reports.
• The amounts Nvidia plans to invest in Agile Robots, Avelios Medical, Mirelo and Reflex Aerospace; none were disclosed.
• Huang's original English wording of the "falling behind" remark; we saw only dpa's German version.
• The full text of the declaration of intent, which has not been published.
• Who signed: Nvidia says Merz signed alongside the two ministries; German reports name the ministries.
• The Siemens savings and the 104-qubit record are company claims we could not test.