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aiAdvanced2 min read10/20/2026

Germany plans industrial AI pact as Huang warns of lost ground

A planned partnership with Nvidia would direct hundreds of millions of euros towards industrial AI adoption, following Jensen Huang's criticism of European hesitation.

Nvidia chief executive Jensen Huang has warned that Germany is losing ground in artificial intelligence, arguing that Europe's considerable talent and potential are being held back by excessive hesitation and analysis. Speaking to journalists in London, he called on policymakers to move more swiftly from deliberation to practical deployment. His remarks come as the German government prepares closer cooperation with Nvidia in response to concerns about the country's technological competitiveness.

Chancellor Friedrich Merz and Huang are expected to unveil a joint AI pact at the Invest in Germany investment summit in Berlin. Designed to accelerate the adoption of AI products across German industry, the initiative is set to receive hundreds of millions of euros from the government. Around ten established German companies, including Siemens and Audi, are expected to participate alongside the start-up Black Forest Labs. The partnership builds on the Sovereign Open Source Foundation Models initiative, an alliance focused on developing powerful open-source AI systems.

Most of the funding is intended to secure access to processing power through Deutsche Telekom's Industrial AI Cloud, which uses Nvidia's newest Blackwell hardware. The government wants this investment to make Germany more appealing as a destination for innovation and technological development. At the summit on Tuesday, senior international executives, investors and government officials will discuss investment in Germany, with artificial intelligence, energy and infrastructure among the central themes. The competitiveness of the German economy will also be on the agenda.

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