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Germany's Merz urges AI investment ahead of Nvidia deal

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In short

Chancellor Friedrich Merz is urging Germany's businesses to embrace artificial intelligence (AI) ahead of a partnership with Nvidia, citing the need to modernize the economy and address rising support for the far-right Alternative for Deutschland party. The partnership aims to promote AI in German industry, with a memorandum of understanding signed between the German economy ministry and Nvidia. A German group of companies and investors, including Siemens and Deutsche Bank, has expressed interest in investing up to €4.1 trillion in AI, energy, and defence by 2035.

Key points

  • The partnership between Germany and Nvidia aims to modernize the German economy.: The partnership between Germany and Nvidia aims to modernize the German economy.
  • Investment in AI is expected to reach up to €4.1 trillion by 2035.: Investment in AI is expected to reach up to €4.1 trillion by 2035.
  • The move comes amid global competition and rising support for the far-right Alternative f…: The move comes amid global competition and rising support for the far-right Alternative for Deutschland party.

Sources checked by our analysis pipeline: 1

BERLIN/FRANKFURT, Oct 19 : Chancellor Friedrich Merz appealed to Germany's businesses to embrace artificial intelligence at an industry summit in Berlin on Monday that was meant to attract investment, including an expected deal with US chip maker Nvidia.

Speaking alongside Nvidia CEO Jensen Huang at a red-carpet event marking the start of the summit, Merz stressed the importance of AI in efforts to revive Germany's economy and modernise its industry.

Faced with global competition that is targeting the country's top auto, chemicals and engineering firms, Merz is under pressure to secure growth amid rising support for the far-right Alternative for Deutschland party.

"We are in the midst of a fundamental economic and technological transformation fuelled by exponential progress in artificial intelligence," Merz said, telling business leaders: "Please open your doors for AI to make use of your data."

Merz said cooperation with Nvidia was key for Germany's future success. Huang pointed to the company's existing cooperation with German carmakers like Mercedes-Benz, which is developing premium robotaxis using Nvidia software.

Germany and Nvidia are expected to announce a partnership to promote AI in German industry at the summit, which continues on Tuesday. The German economy ministry has signed a memorandum of understanding with Nvidia, the government said, without giving further details.

A German group of companies and investors that includes Siemens and Deutsche Bank said in a report that it sees the potential for investment of up to €4.1 trillion ($4.6 trillion) in Germany by 2035 across areas including AI, energy and defence.

Made for Germany, a private sector business group, said its members planned to invest more than €850 billion through 2028, after investing more than €200 billion in 2025. More companies and investors have been invited to join the initiative.

($1 = €0.8926)

Original source: www.channelnewsasia.com

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