Nvidia CEO Urges German Industry to Embrace AI for 'Re-engineering'

Nvidia CEO Jensen Huang is urging Germany's prominent car and industrial machine manufacturers to rapidly adopt artificial intelligence to "re-engineer" the nation's business model. Huang stated that while digital technology will not replace manufacturing and engineering, integrating AI can leverage Germany's vast reserves of manufacturing data and expertise.

"The next wave of AI is physical. This is where AI interacts with the physical world: robotics, manufacturing, cars, heavy industry," Huang said Monday during a discussion with German Chancellor Friedrich Merz at an investment conference in Berlin. "And so AI can only augment your capability. It will not replace your capability. So take advantage of the technology."

Huang emphasized that Germany's manufacturing data and expertise represent a "natural resource" that should be further capitalized upon using AI. "This industrial revolution is so mighty, so powerful. You don't have another chance," he added.

European leaders, including Merz, view AI as a potential growth engine but are also wary of European reliance on U.S. tech companies in this field. The extensive, high-quality manufacturing data available in Europe is seen as a potential competitive advantage against the U.S. and China, an opportunity previously highlighted by former European Central Bank head Mario Draghi.

Huang and Merz also discussed AI's potential benefits for Germany's "mittelstand" – its numerous small and medium-sized companies specializing in industrial sectors.

Germany's economy has faced headwinds, including high energy prices following the invasion of Ukraine, increased competition from China in key sectors like automotive, and bureaucratic delays. These factors have impacted the nation's export-oriented manufacturing economy.

Concerns persist in Europe regarding the continent's lag in building data centers necessary for training AI applications and the security of sensitive European data when stored on U.S. company servers, which are subject to U.S. legal jurisdiction. Huang appeared to address these concerns by encouraging Germany to import AI technology while stressing the importance of retaining its own culture, values, and knowledge. "You should not export your culture, export your values, export your knowledge," he advised. "Let them codify, let them program, let them teach this artificial intelligence and keep it here in Germany, and let's re-engineer, the chancellor's words, Germany. This is your chance to do it."